Bob\'s Baked Goods Company reported the following income statement for 2009: Sal
ID: 2685249 • Letter: B
Question
Bob's Baked Goods Company reported the following income statement for 2009: Sales $2,500,000 Variable Costs 900,000 Fixed Operating Costs 700,000 EBIT 900,000 Interest Expense 200,000 EBT 700,000 Taxes (30%) 210,000 Net Income $490,000 Earnings Per Share $4.90 If Bob's sales next year increase by 20%, Bob's EBIT will increase: (Points : 1) 20%, showing no operating leverage. 20%, showing no financial leverage. over 35%, due to operating leverage. over 35%, due to operating leverage and financial leverage.Explanation / Answer
20%, showing no operating leverage.