Question
The degree of operating leverage for Geesling Company is 8.0 at 80,000 units of sales. At 80,000 units of sales,the net profit is $10,000. If
The degree of operating leverage for Geesling 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 increases to 90,000 units, what is the net profit?
A)$80,000
B)$12,000
C)$22,222
D)$20,000
Please answer it with explanation
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Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan, Louis Beaubien
8th Canadian Edition
134453735, 9780134824680, 134824687, 9780134733081 , 978-0134453736
