Answered step by step
Verified Expert Solution
Question
1 Approved Answer
30. margin of safety ratio to be 2.5, its operating leverage to be 1.5, and its contribution margin ratio to be 0.55. SixthZ estimates that
30.
margin of safety ratio to be 2.5, its operating leverage to be 1.5, and its contribution margin ratio to be 0.55. SixthZ estimates that it will have an increase in sales of 45% next year. What impact will that have on its operating income?
Group of answer choices
24.75% increase
112.5% increase
67.5% increase
45% increase
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started