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Sagot :
It would be anticipated that the profit would rise by 45%. The appropriate response to the given question is option (c).
What is Operating Leverage?
The percentage of a company's cost structure that is made up of fixed expenses as opposed to variable costs is measured by operating leverage. A corporation is said to have more operating leverage if its fixed expenses are higher than its variable costs.
Magnitude of operating leverage= 4.5
Old sales= $100000
New sales= $110000
Percentage increase in sales:
(New-old)/old = (110,000-100,000)/100,000
= 10%
Consequently, a percentage rise in profit might be anticipated:
sales percentage growth times the degree of operational leverage
= 10% * 4.5
= 45%
To know more about Operating Leverage, visit:
https://brainly.com/question/29743788
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