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Randy LTD is interested in increasing its sales by 10% next year. Randy also have the following information: Sales $ 150,000 Variable expenses 90,000 Contribution

Randy LTD is interested in increasing its sales by 10% next year. Randy also have the following information:

Sales $ 150,000
Variable expenses 90,000
Contribution margin 60,000
Fixed expenses 30,000
NOI $ 30,000

Randy also has a DOL of 2.0. A 10% increase in sales would results in what amount of increase in NOI?

$5,000

$3,000

$6,000

$7,500

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