Lofft Corporation Has Provided the Following Contribution Format Income Statement

question 252

Multiple Choice

Lofft Corporation has provided the following contribution format income statement.All questions concern situations that are 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:

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

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