The magnitude of operating leverage for Blue Ridge Corporation is 3.5 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?
A) $2,160
B) $7,560
C) $3,420
D) $1,260

Question

Quizplus · Accepted Answer

The Answer of The magnitude of operating leverage for Blue Ridge Corporation is 3.5 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?
A) $2,160
B) $7,560
C) $3,420
D) $1,260

The Magnitude of Operating Leverage for Blue Ridge Corporation Is