Examlex

Solved

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?


Definitions:

Venture Capital

Investment provided by financiers to startups and small firms believed to possess a strong potential for growth in the long run.

Anticipated Profits

Expected financial gains based on projected business activities, market conditions, and strategies, before they are actually realized.

Marginal Benefit

The surplus benefit or joy experienced upon consuming an additional unit of a good or service.

Expected Profit

The anticipated return on an investment or business venture after considering all relevant costs and revenues.

Related Questions