An increase in sales will increase net operating income by a multiple of that increase in sales. The multiple is known as the ______. Multiple choice question.

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15-03-2022
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An increase in sales will increase net operating income by a multiple of that increase in sales. The multiple is known as the ______. Multiple choice question.

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adefioyelaoye adefioyelaoye · Answer 1 · 2022-03-29T11:34:46+02:00

Increase in sales will increase net operating income by the degree of operating leverage.

What is Operating leverage?

This can be defined as a measure of how revenue growth translates into growth in operating income.

In this scenario, increase in sales leads to a corresponding increase in income with the operating leverage measuring the extent to which it occurred.

Read more about Operating leverage here https://brainly.com/question/3831208