Question: Multiple Choice Question A 1 5 % increase in sales resulted in a 4 0 % increase in net income for Company A and a

Multiple Choice Question
A 15% increase in sales resulted in a 40% increase in net income for Company A and a 60% increase in net income for Company B. Based on this, which company
has the greater, operating leverage?
Company B
Company A
Need help? Revlew these concept resources.
Read About the Concept
Multiple Choice Question A 15% increase in sales resulted in a

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

The effect of a sales return on a company's financial statements is a(n): Multiple choice question. decrease in expenses increase in net income increase in expenses decrease in net income increase in...

Q:

'The following information is available for the ABC Company. ABC Company Contribution Margin Income Statement Revenues $2,950,000 Variable Costs DM $700,000 DL $450,000 MOH $250,000 Selling and Admin...

Q:

Accounting 220 Final Exam 31 questions fairly easy. Needs to be done in an hour. The first half of the exam features 6 questions with short answers and calculations. For these, omit all general...

Q:

Accounting 220 Final Exam 31 questions fairly easy. Needs to be done in an hour. The first half of the exam features 6 questions with short answers and calculations. For these, omit all general...

Q:

Please review my commentary on Financial statement analysis of two Universities in the South Pacific namely: University of the South Pacific and National University of Samoa. ok ok ok ok ok ok ok ok...

Q:

Attached is a list of practice questions for an accounting class. The list is a practice test only. 1. Indirect labor is a part of a b c d prime cost. conversion cost. period cost. nonmanufacturing...

Q:

The attached document is a collection of Accounting questions for a practice test. Would you be able to answer the following questions within the attached document? Your support is greatly...

Q:

Suppose that you are looking at the income statement of some company. You are looking at the following parts of the 2018 income statement (see the screen shot below): Net sales Cost of goods sold...

Q:

Please I will appreciate if you can provide the answer within 30 minutes. This is a timed quiz. Most are multiple choice question. Thanks 1. Which of the following is not considered a part of the...

Q:

May I please get help with 3,4,5 thank you. This is for finance. With adjusting entries Multiple Choice (10 points) 1. An increase in an expense a. increases revenues. b. increases assets. c....

Q:

Make a SELECT statement that will display addresses from the addresses table. Display only addresses thatare in NY or NJ or CA. Show the customer id, the City, State, and Zip Code columns. Display...

Q:

please explain in detail, thanks! Prove that n is divisible by 8 if and only if n is divisible by 4. (n EN)

Q:

The sale of a unit of a firm to existing management is often achieved through a leveraged buyout. Question 6 options: TrueFalse

Q:

Questions Q1. Write a Python program to retrieve the first and last colors from the following list: color_list = ["red", "green", "white", "blue", "black") Q2. Given the following dictionary,...