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A company reported the following information for its recent fiscal year: Sales: $91.8 billion Cost of Goods Sold: $56.6 billion SG&A: $5.2 billion Net Income:
A company reported the following information for its recent fiscal year:
Sales: $91.8 billion
Cost of Goods Sold: $56.6 billion
SG&A: $5.2 billion
Net Income: $22.2 billion
The company reported depreciation and amortization expense of $2.8 billion on its statement of cash flows for the most recent fiscal year.
Assume that 75% of SG&A represents fixed costs.
Using the method from class notes for Module 11, what is the percentage change in net income if sales decrease by 10%?
-10.00%
-11.25%
-13.00%
-16.50%
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