Multiple Choice
Figure 4-6.Shorter Company had originally expected to earn operating income of $130,000 in the coming year. Shorter's degree of operating leverage is 2.4. Recently, Shorter revised its plans and now expects to increase sales by 20% next year.
-Refer to Figure 4-6. What is the percent change in operating income expected by Shorter in the coming year?
A) 8.33%
B) 48.0%
C) 20.0%
D) 54.17%
E) 30.0%
Correct Answer:
Verified
Correct Answer:
Verified
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