Elite Company Had Originally Expected to Earn Operating Income of $140,000

question 11

Multiple Choice

Elite Company had originally expected to earn operating income of $140,000 in the coming year.Elite's degree of operating leverage is 2.6.Recently, Elite revised its plans and now expects to increase sales by 25% next year.What is the percent change in operating income expected by Elite in the coming year?

• A) 8%
• B) 65%
• C) 20%
• D) 54%
• E) 30%

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Definitions:

Micro Variable

A Micro Variable is a specific, individual factor that can influence outcomes within a limited context, often used in analyzing economic, financial, or behavioral trends on a small scale.

Purchasing Approaches

Purchasing approaches are strategies and methodologies that organizations use to acquire goods and services in the most effective manner.

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors that might require separate products or marketing strategies.

Segments Possess

Refers to the characteristics or attributes that define different market or consumer segments within a broader market, allowing companies to tailor their offerings more precisely.