Question
Horton's income for 2015 was $130,000 and its degree of operating leverage was 2.4. This year the cost equation will be the same but sales
Horton's income for 2015 was $130,000 and its degree of operating leverage was 2.4. This year the cost equation will be the same but sales are expected to increase 20%. What will be this year's income?
a. $62,400
b. $312,000
c. $192,400
d. $130,000
e. $156,000
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Information For Decision Making Readings In Cost And Managerial Accounting
Authors: Alfred Rappaport
3rd Edition
0134643542, 978-0134643540
