Kulwicki Corporation Wants to Determine the Effect of an Expansion

question 17

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

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Definitions:

Jurgen Habermas

A German sociologist and philosopher known for his theory on the public sphere and communicative action, emphasizing the importance of rational discourse in democratic societies.

Social System

An organized and complex set of relationships among individuals and groups, which functions based on some consensus or shared norms.

Modern Bureaucracy

A hierarchical and formal organization structure developed to manage large-scale administrative tasks efficiently, characterized by fixed areas of activity, a hierarchy of authority, and a system of rules and procedures.

Zygmunt Bauman

A Polish sociologist and philosopher who is known for his analysis of the links between modernity, globalization, the Holocaust, and consumerism.