Rushenberg Corporations operating leverage is 10.8. If the company.pdf

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Rushenberg Corporation\'s operating leverage is 10.8. If the company\'s sales increase by 14%, its net operating income should increase by about: Multiple Choice 10.8%, 77.1% ,14.0%, 151.2% Solution operating leverage=% change in net operating income/% change in sales Hence net operating income should increase by=(10.8*14%) which is equal to =151.2%.

Rushenberg Corporation's operating leverage is 10.8. If the company's sales increase by 14%,
its net operating income should increase by about:
Multiple Choice 10.8%, 77.1% ,14.0%, 151.2%
Solution
operating leverage=% change in net operating income/% change in sales
Hence net operating income should increase by=(10.8*14%)
which is equal to
=151.2%

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