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12) The degree of operating leverage for Murphy Company is 8.0 at 80,000 units of sales. At 80,000 units of sales, the net profit is

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12) The degree of operating leverage for Murphy Company is 8.0 at 80,000 units of sales. At 80,000 units of sales, the net profit is $10,000. If the sales volume decreases to 72,000 units, what is the net profit? A) $2,000 B) $8,000 C) $10,000 D) $18,000 Answer:A Diff: 3 LO: 2-6 AACSB: Analytic skills Learning Outcome: None 2 9 8

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