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The magnitude of operating leverage for Blue Ridge Corporation is 2.5 when sales are $130,000 and net income is $29,000. If sales decrease by 6%,

The magnitude of operating leverage for Blue Ridge Corporation is 2.5 when sales are $130,000 and net income is $29,000. If sales decrease by 6%, net income is expected to decrease by what amount?

A. $740

B. $4350

C. $1740

D. $3420

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