Question
1. Riley Co. has a DOL of 140% and a DFL of 113%. If sales decrease by 12%, what is the expected percentage change in
1. Riley Co. has a DOL of 140% and a DFL of 113%. If sales decrease by 12%, what is the expected percentage change in net income?
A. Net income will decrease by 19%.
B. Net income will decrease by 25%.
C. Net income will stay the same.
D. Net income will increase by 25%.
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McMillan On Options
Authors: Lawrence G. McMillan
2nd Edition
0471678759, 978-0471678755
