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Last year. Neptune Corporation had sales of $871,000 and paid taxes of $80,000. Because of the low interest rate environment, the firm also borrowed some
Last year. Neptune Corporation had sales of $871,000 and paid taxes of $80,000. Because of the low interest rate environment, the firm also borrowed some money from the local bank and paid $59,000 interest expense. In addition, the firm incurred Variable costs and Fixed Costs of $210,000 and $141,000 respectively. If sales increase by 5%, what should be the percentage change in operating income? SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. IF YOUR ANSWER IS 7.7011%. FOR EXAMPLE, ENTER
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