Question: Amount Selling price $ 30 Variable expense ratio 40% Fixed expenses $ 8,000 per month Unit sales 1,000 per month A 5% increase in sales

Amount
Selling price $ 30
Variable expense ratio 40%
Fixed expenses $ 8,000 per month
Unit sales 1,000 per month

A 5% increase in sales will generate what percent increase in net operating income?

Multiple Choice

  • 15%

  • 9%

  • 12%

  • 10%

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