Question
The magnitude of operating leverage for Blue Ridge Corporation is 3.2 when sales are $200,000 and net income is $36,000. If sales decrease by 6%,
The magnitude of operating leverage for Blue Ridge Corporation is 3.2 when sales are $200,000 and net income is $36,000. If sales decrease by 6%, net income is expected to decrease by what amount?
Multiple Choice
- $6,912
- $2,160
- $3,840
- $1,152
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International Accounting
Authors: Timothy Doupnik, Hector Perera
3rd Edition
978-0078110955, 0078110955
