An analyst does research about financial leverage and gathers the following information about a company:
Units produced and sold in 2010 | 150000 |
Degree of operating leverage at 150000 units | 2.5 |
Degree of financial leverage | 2.0 |
Expected growth rate of unit sales in 2011 | 10% |
The expected change in operating income for 2011 is closest to:()
A. 20%.
B. 25%.
C. 50%.