Flingers Inc.reveals the following information in their annual report for FY 2014. Upper management plans to cut cost of goods sold by 5% for the coming year but retain the same sales.What will Flingers' profit leverage effect be for 2015?
A) $13.33
B) $14.71
C) $17.50
D) $18.50

Question

Flingers Inc.reveals the following information in their annual report for FY 2014.  Upper management plans to cut cost of goods sold by 5% for the coming year but retain the same sales.What will Flingers' profit leverage effect be for 2015?
A) $13.33 
B) $14.71 
C) $17.50 
D) $18.50

Quizplus · Accepted Answer

The Answer of Flingers Inc.reveals the following information in their annual report for FY 2014.  Upper management plans to cut cost of goods sold by 5% for the coming year but retain the same sales.What will Flingers' profit leverage effect be for 2015?
A) $13.33 
B) $14.71 
C) $17.50 
D) $18.50