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Sales for Green Inc. are expected to change by 30%. If Green's degree of operating leverage is 1.20, how much is Green's operating income expected to change?
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Sales for Green Inc. are expected to change by 30%. If Green's degree of operating leverage is 1.20, how much is Green's operating income expected to change?

User Kzap
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1 Answer

1 vote

Answer: 36%

Step-by-step explanation:

From the question, we are informed that the sales for Green Inc. are expected to change by 30% and that Green's degree of operating leverage is 1.20.

Green's operating income is expected to change by:

= 30% × 1.2

= 36%

User Partho
by
5.1k points
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