13 This year, the company's sales has increased from $200,000 to $240,000 and its profit has...
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13 This year, the company's sales has increased from $200,000 to $240,000 and its profit has increased by $12,000 compared to last year. The Degree of Operating Leverage (DOL) this year is 4.00. If the sales are expected to increase by 5% next year, how much profit does the company will make next year? А. $ 14,400 В. 18,000 С. $ 18,900 D. $ 21,600 E. None of the above 13 This year, the company's sales has increased from $200,000 to $240,000 and its profit has increased by $12,000 compared to last year. The Degree of Operating Leverage (DOL) this year is 4.00. If the sales are expected to increase by 5% next year, how much profit does the company will make next year? А. $ 14,400 В. 18,000 С. $ 18,900 D. $ 21,600 E. None of the above
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Step 1 Formulas used in solution Contribution margin ratio Change in profit Change in sales Degree ... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 9780273713630
13th Revised edition
Authors: James van Horne, John Wachowicz
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