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The magnitude of operating leverage for Forbes Corporation is 2.5 when sales are $170,000 and net income is $21,000. If sales increase by 5%, what

The magnitude of operating leverage for Forbes Corporation is 2.5 when sales are $170,000 and net income is $21,000. If sales increase by 5%, what is net income expected to be? Multiple Choice

1. $25,000

2. $21,050

3. $22,050

4. $23,625

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