Bendel Incorporated Has an Operating Leverage of 5

question 16

Multiple Choice

Bendel Incorporated has an operating leverage of 5.9. If the company's sales increase by 10%, its net operating income should increase by about:

• A) 59.0%
• B) 1.7%
• C) 10.0%
• D) 47.4%

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Definitions:

United States

A country located in North America, consisting of 50 states and a federal district, known for its significant economic and political influence globally.

Income Inequality

The uneven distribution of income within a population, leading to disparities in wealth and living standards among different socio-economic groups.

Countries

Distinct territorial entities recognized as independent states, typically characterized by their own government, population, and defined geographical boundaries.

Lowest Level

The minimum or most basic level of something, often referring to the foundation or starting point.