Operating leverage for ACDC Company is 3.5 for current sales of $100,000 and current net...
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Accounting
Operating leverage for ACDC Company is 3.5 for current sales of $100,000 and current net income of $20,000. Which of the following statements is/are true?
I. If sales increase by 2%, net income will increase by 7%.
II. Current contribution margin is $70,000
a) only I is true
b) only II is true
c) neither are true
d) both I and II are true
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