Answered

Bendel Inc. has an operating leverage of 5.9. If the company's sales increase by 10%, its net operating income should increase by about: Multiple Choice 59.0% 1.7% 10.0% 47.4%

Answer :

Answer:

The operating Income should increase by about 59.0%.

Explanation:

Degree of Operating Leverage = % Change in EBIT / % Change in Sales

5.9 = % Change in EBIT / 10%

% Change in EBIT = 5.9 * 10% = 59.0%

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