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Ainat [17]
3 years ago
6

Shorter Company had originally expected to earn an operating income of $130,000 in the coming year. Shorter's degree of operatin

g leverage is 2.4. Recently, Shorter revised its plans and now expects to increase its sales by 20% next year. What is Shorter's revised expected operating income for the coming year
Business
1 answer:
Snowcat [4.5K]3 years ago
8 0

Answer:

$192,400

Explanation:

Shorter Company

$130,000 + (0.48 * $130,000)

=$130,000+$62,400

= $192,400

Therefore Shorter's revised expected operating income for the coming year will be $192,400

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