Question
Assume that Yellow Freight company has a leverage factor of 6, and current income before taxes of $100,000. If sales decline by 20%, the company's
Assume that Yellow Freight company has a leverage factor of 6, and current income before taxes of $100,000. Ifsales decline by 20%,the company's income before taxes will decrease by $________________. Enter the dollar amount of the decline.
A.$100,000
B.$120,000
C.$90,000
D.$130,000
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Cambridge IGCSE And O Level Accounting Coursebook
Authors: Catherine Coucom
2nd Edition
1316502775, 978-1316502778
