The February contribution format income statement of Caines Corporation appears below:
-If the company's sales increase by 18%,its net operating income should increase by about:

Question

The February contribution format income statement of Caines Corporation appears below: 
-If the company's sales increase by 18%,its net operating income should increase by about:

Quizplus · Accepted Answer

Percentage change in net operating income = Degree of operating leverage F1F1F1S1F1F1F10 Percentage change in sales
= 3.49 F1F1F1S1F1F1F10 18% = 63% (rounded)

The February Contribution Format Income Statement of Caines Corporation Appears