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Ugo [173]
3 years ago
13

Bendel Incorporated has an operating leverage of 7.3. If the company's sales volume increases by 3%, its net operating income sh

ould increase by about:
Business
1 answer:
Svet_ta [14]3 years ago
6 0

Answer:

21.9%

Explanation:

Given that

Operating leverage = 7.3

Increase in sales  = 3%

According to the given situation, the computation of net operating income is shown below:-

Increase in operating income  = Operating leverage × Increase in sales

= 7.3 × 3 %

= 21.9%

Therefore for computing the increase in operating income we simply applied the above formula.

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