If the company's sales increase by 10%, its net operating income should increase by about:
A)10.00%
B)10.64%
C)34.60%
D)93.98%

Name: If the company's sales increase by 10%, its net operating income should increase by about: A)10.00% B)10.64% C)34.60% D)93.98%
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The percentage increase in net operating income is typically higher than the percentage increase in sales due to operating leverage, which amplifies the effect of sales changes on income.

If the Company's Sales Increase by 10%, Its Net Operating