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C @ 4 12 Which of the following is defined as the amount by which a company's sales can decline before operating losses are incurred?
C @ 4 12 Which of the following is defined as the amount by which a company's sales can decline before operating losses are incurred? Select one: it of a. Contribution margin b. Degree of operating leverage. c. Contribution margin ratio. d. Margin of safety. 13 If company A has a higher degree of operating leverage than company B, then which of the following statements is true? Select one: a. Company A is more profitable. b. Company A is less risky. c. Company A has higher variable expenses. d. Company A is riskier. A company requires $600,000 in sales to meet its target net income after tax. Its contribution margin is 40%, and fixed costs are $80,000. What is the net income, given that its after-tax rate is 70%? Select one: a. $48,000 O b. $160,000 c. $112,000 O d. $400,000
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