If the Company's Sales Increase by 10%, Its Net Operating

question 33

Multiple Choice

If the company's sales increase by 10%, its net operating income should increase by about:

• A)10.00%
• B)10.64%
• C)34.60%
• D)93.98%

---

Definitions:

Completeness

In economics, completeness refers to a property of preferences indicating that any two bundles of goods can be compared, allowing for decisions on which is preferred or if they are equally desirable.

Transitivity

A principle in decision making that if option A is preferred over B, and B is preferred over C, then A should be preferred over C.

Marginal Utility

The extra pleasure or advantage obtained from using an additional unit of a product or service.

Potato Chips

A popular snack made from thin slices of potatoes that are fried or baked until crispy, often seasoned with various flavors.