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How much profit does the company will make next year

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Question - This year, the company's sales has increased from $200,000 to $240,000 and its profit has increased by $12,000 compared to last year. The Degree of Operating Leverage (DOL) this year is 4.00.

If the sales are expected to increase by 5% next year, how much profit does the company will make next year?

a. 14,400

b. 18,000

c. 18,900

d. 21,600

e. None of the above

Reference no: EM132844098

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