The following information relates to Zinc Corporation for last year:
|
Sales |
$500,000 |
|
Net operating income |
$25,000 |
|
Degree of operating leverage |
5 |
Sales at Zinc are expected to be $600,000 next year. Assuming no change in cost structure, this means that net operating income for next year should be:
A) $30,000
B) $45,000
C) $50,000
D) $125,000