A 15% change in sales will result in a 15% change in net income.

Name: A 15% change in sales will result in a 15% change in net income.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The relationship between sales and net income depends on the company's profit margin. If the profit margin is constant, then a 15% change in sales will result in a 15% change in net income. However, if the profit margin varies, then the change in net income will not necessarily be the same as the change in sales.

A 15% Change in Sales Will Result in a 15