Lofft Corporation Has Provided the Following Contribution Format Income Statement

question 156

Multiple Choice

Lofft Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Using the degree of operating leverage, the estimated percent increase in net operating income as the result of a 10% increase in sales is closest to: (Round your intermediate calculations to 1 decimal place.)

• A) 1.13%
• B) 88.89%
• C) 22.22%
• D) 4.50%

---

Definitions:

Secondary Data

Information collected for alternative purposes prior to the study.

Buying Behavior

The decision-making processes and actions of consumers regarding the search for, selection, purchase, use, and disposal of goods and services.

Marketing Research Process

A systematic methodology for gathering, recording, and analyzing data about issues related to marketing products and services.

Focus Groups

A research method that gathers feedback, opinions, or perceptions from a group of people about a product, service, concept, or idea.