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The following table represents forecasted sales information for Iniesta Inc. Forecasted Operations Sales with 20.00% Increase Sales in units (millions) 150.00 $2,625.00 (1,125.00) Sales revenues
The following table represents forecasted sales information for Iniesta Inc. Forecasted Operations Sales with 20.00% Increase Sales in units (millions) 150.00 $2,625.00 (1,125.00) Sales revenues Unit Change 30.00 $525.00 (225.00) 180.00 $3,150.00 (1,350.00) Variable cost of goods sold Gross profit $1,500.00 (180.00) $1,800.00 (180.00) $300.00 (0.00) Fixed operating costs Net operating income $1,320.00 $1,620.00 $300.00 By how much will net operating income increase for the given increase in sales and associated expenses? (Round your answer to the nearest whole percent.) 23% Equally risky Less risky Using the percent change in net operating income computed in the previous section, calculate the degree of operating leverage fo change of 20.00% from the original forecast. More risky Assuming an identical cost structure, compared to a company with a degree of operating leverage 1.38, how risky is Iniesta Inc
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