Using degree of operating leverage) Last year Baker-Huggy Inc. had fixed costs of $150,000 and net operating income of $34,000. If sales increase by 18 percent, by how much will the firm's NOI increase? What would happen to the firm's NOI if sales decreased by 21 percent? If sales increase by 18%, the change in the firms NOI will be (a decrease or increase) o

Using degree of operating leverage) Last year Baker-Huggy Inc. had fixed costs of $150,000 and net operating income of $34,000. If sales increase by 18 percent, by how much will the firm's NOI increase? What would happen to the firm's NOI if sales decreased by 21 percent? If sales increase by 18%, the change in the firms NOI will be (a decrease or increase) o

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 10P

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If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7
(Using degree of operating leverage) Last year Baker-Huggy Inc. had fixed costs of $120,000 and net operating income of $29,000. If sales increase by 17 percent, by how much will the firm's NOI increase? What would happen to the firm's NOI if sales decreased by 20 percent? If sales increase by 17%, the change in the firm's NOI will be of %. (Select from the drop-down menu and round to two decimal places.) If sales decrease by 20%, the change in the firm's NOI will be of %. (Select from the drop-down menu and round to two decimal places.)
(Using degree of operating leverage) Last year Baker-Huggy Inc. had fixed costs of $140,000 and net operating income of $28,000. If sales increase by 18 percent, by how much will the firm's NOI increase? What would happen to the firm's NOI if sales decreased by 23 percent? If sales increase by 18%, the change in the firm's NOI will be of %. (Select from the drop-down menu and round to two decimal places.)
(Using degree of operating leverage) Last year Baker-Huggy Inc. had fixed costs of $140,000 and net operating income of $28,000. If sales increase by 18 percent, by how much will the firm's NOI increase? What would happen to the firm's NOI if sales decreased by 23 percent? If sales increase by 18%, the change in the firm's NOI will be V of %. (Select from the drop-down menu and round to two decimal places.)
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