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(Using degree of operating leverage) Last year Baker-Huggy Inc. had fixed costs of $120,000 and net operating income of $29,000. If sales increase by 17
(Using degree of operating leverage) Last year Baker-Huggy Inc. had fixed costs of $120,000 and net operating income of $29,000. If sales increase by 17 percent, by how much will the firm's NOT increase? What would happen to the firm's NOI if sales decreased by 21 percent? If sales increase by 17%, the change in the firm's NOI will be an increase of 70.38 %. (Select from the drop-down menu and round to two decimal places.)
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