Lily company has an operating leverage factor of 4 at this time. And it's contribution margin ratio is 30%. Currently Sales are $100,000. If sales units increase by 20% (by $20,000) next period (unit variable expense and selling price remain the same), it's operating leverage factor will become 2.67. For that sales increase, the company's net operating income will go up by:

a: 80% b: $24,000 c: 120% d. 320%

Question 15 Lily Company has an operating leverage factor of 4 at this time. And its contribution margin ratio is 30%. Currently Sales are $100,000. If sales units increase by 20% (by $20,000) next period (unit variable expense and selling price remain the same), its operating leverage factor will become 2.67. For that sales increase, the company's net operating income will go up by Selected Answer: A. 80% Answers: A. 80% B. $24,000 C. 120% D. 320%