Kulwicki Corporation Wants to Determine the Effect of an Expansion

question 24

Multiple Choice

Kulwicki Corporation wants to determine the effect of an expansion of its sales on its operating income (EBIT) . The firm's current degree of operating leverage is 2.50. It projects new unit sales to be 170,000, an increase of 45,000 over last year's level of 125,000 units. Last year's EBIT was $60,000. Based on a degree of operating leverage of 2.5, what is this year's expected EBIT with the increase in sales?

• A) $108,300
• B) $ 97,741
• C) $ 92,854
• D) $102,885
• E) $114,000

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Definitions:

Delirium

An acute neuropsychiatric condition characterized by confusion, disturbed consciousness, and altered cognition, often with a fluctuating course.

Neurocognitive Disorder

A category of conditions that affect cognitive functions such as memory, problem-solving, and attention, usually as a result of brain damage or disease.

Misdiagnosed

Incorrectly diagnosed or identified, often leading to treatment for a condition or disease that the patient does not actually have.

Delusional Disorder

A mental health condition characterized by the presence of one or more delusions (false beliefs) that persist for at least one month, without the broader symptoms of schizophrenia.