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%
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%
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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Transcribed Image Text: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%
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