Question
Using degree of operating leverage) Last year Baker-Huggy Inc. had fixed costs of $170 comma 000 and net operating income of $34 comma 000. If
Using degree of operating leverage) Last year Baker-Huggy Inc. had fixed costs of $170 comma 000 and net operating income of $34 comma 000. If sales increase by 19 percent, by how much will the firm's NOI increase? What would happen to the firm's NOI if sales decreased by 21 percent?
If sales increase by 19%, the change in the firm's NOI will be (a decrease or an increase) of % (Select from the drop-down menu and round to two decimal places.)
If sales decrease by 21%, the change in the firm's NOI will be (a decrease or an increase) of %. (Select from the drop-down menu and round to two decimal places.)
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