Figure 4-6

question 106

Multiple Choice

Figure 4-6.Shorter Company had originally expected to earn operating income of $130,000 in the coming year. Shorter's degree of operating leverage is 2.4. Recently, Shorter revised its plans and now expects to increase sales by 20% next year.
-Refer to Figure 4-6. What is Shorter's revised expected operating income for the coming year?

• A) $192,400
• B) $156,000
• C) $312,000
• D) $130,000
• E) $62,400

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