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Consider the following summary modified income statement for Tech Inc.: Sales $538,000 Variable Operating Costs 241,000 Contribution Margin $297,000 Fixed Operating Costs 113,000 Operating Income
Consider the following summary modified income statement for Tech Inc.:
Sales $538,000
Variable Operating Costs 241,000
Contribution Margin $297,000
Fixed Operating Costs 113,000
Operating Income $184,000
Interest Expense 26,000
Net Income $158,000
Operating leverage is 1.61
Sales for Green Inc. are expected to change by 8%. If Green's degree of operating leverage is 2.00, how much is Green's operating income expected to change?
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