Please help me with accounting questions Marshall Company's operating leverage is 3.6. If salesdecrease by 8%, what will be the approximate percentagechange in net operating income?a. -8.0%b. -28.8%c. -2.2%d. -18.4%

Step 1: Definition of Operating LeverageOperating Leverage: Operating leverage measures the…

Answered: Marshall Company's operating leverage…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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Marshall Company's operating leverage is 3.6. If sales decrease by 8%, what will be the approximate percentage change in net operating income? a. -8.0% b. -28.8% c. -2.2% d. -18.4%