Woods Company Originally Expected to Earn Operating Income of $150,000

question 73

Multiple Choice

Woods Company originally expected to earn operating income of $150,000 next year. Woods's degree of operating leverage is 2.4. Recently, Woods revised its plans and now expects to increase sales by 20% next year.
-Refer to the Figure.What is the percent change in operating income expected by Woods in the coming year?

• A)8.3%
• B)20.0%
• C)30.0%
• D)48.0%

---

Definitions:

Distortions

Alterations or misrepresentations of the original shape or meaning of something.

Hearing Acuity

The sharpness or clarity of hearing, a measure of how well a person can detect sounds of varying frequencies.

Hearing Problems

Issues related to the ability to perceive sound, which can range from mild hearing loss to complete deafness.