Using the degree of operating leverage, the estimated impact on net operating income of a 5 % increase in sales is 6.45%.
The degree of operating leverage (DOL) measures how much a company's operating income varies in response to sales fluctuations.
The DOL ratio assists analysts in determining how changes in sales affect company earnings.
Because a company with high operating leverage has a high proportion of fixed costs, a significant increase in sales can result in significant changes in profits.
If sales increase by 5%, the calculation for increased Net Operating Income is as follows:
Increase in Net Operating Income = Sales Increase x Degree of Operating Leverage
= 5% x 1.29
= 6.45%
Hence, Using the degree of operating leverage, estimated impact on net operating income of a 5 % increase in sales is 6.45%.
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Answer: The answer is STUDENT SERVICES
Explanation:
The student services page refers to a page on a website where students can get information relevant to them.
This is a page for students provided by the college with links to their services on issues important to the students. Such issues include; date for events, financial aids and so on.
Answer:
The correct word for the blank space is: Compatibility.
Explanation:
Compatibility is how relevant is a good or service for consumers according to their habits. If the product is closely related to the needs, preferences, convictions, and costumes of the buyer it is said that the product compatibility is high and, if it does not match, the product compatibility is low.
Answer:
the maximum amount is $3,150
Explanation:
The computation of the maximum amount that could be used as an interest expenses while calculating the item deductions for the present year is shown below:
Here we considered only the home mortgage interest i.e. qualified i.e. $3,500
The other things would not be considered like interest on automobile loan, interest on bank loan etc as it is not allowed
Therefore the maximum amount is $3,150