Perform a what if analysis to see how operating results will change if sales increase by 12%

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Perform a “what if” analysis to see how operating results will change if sales increase by 12% during the second year of operating.

a) What is the new net operating income?

b) What is the new degree of operating leverage?

c) If sales increased by 10% in the third year, what percentage growth in profit can the company expect?

d) What is the predicted operating profit in year 3?

Related Book For answer-question

Using Financial Accounting Information The Alternative to Debits and Credits

ISBN: 978-1133161646

7th Edition

Authors: Gary A. Porter, Curtis L. Norton

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Posted Date: Nov 15, 2022 08:37 AM

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Perform a what if analysis to see how operating results will change if sales increase by 12%

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a The new net operating income would be 1120000 b The new d... View the full answer

Using Financial Accounting Information The Alternative to Debits and Credits

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