Peyton Place Corporation had the following income statement for 2016:

a. Calculate the operating leverage ratio.
b. If sales increase by 20 percent, what will be the percentage change in income?
c. If sales increase by $16,500, how much will income increase?

Question

Peyton Place Corporation had the following income statement for 2016:
  
a. Calculate the operating leverage ratio.
b. If sales increase by 20 percent, what will be the percentage change in income?
c. If sales increase by $16,500, how much will income increase?

Quizplus · Accepted Answer

The Answer of Peyton Place Corporation had the following income statement for 2016:
  
a. Calculate the operating leverage ratio.
b. If sales increase by 20 percent, what will be the percentage change in income?
c. If sales increase by $16,500, how much will income increase?

Peyton Place Corporation Had the Following Income Statement for 2016