Answer:
Increase in profit will be 42 %
So option (C) will be correct answer
Explanation:
We have given sales level is $270000
Operating leverage for the factory is given 2.8
It is given that sales is increased by 15 %
We have to find that by how much percentage profit will increase
Increase in profit percentage is given by multiplication of operating leverage and increase in profit sale
So increase in profit will be equal to 2.8 ×15 = 42 %
So option (C) will be correct answer
Answer:
DEMAND AND SUPPLY SHIFTS IN FOREIGN EXCHANGE MARKETS