The degree of operating leverage for Murphy Company is 8.0 at 80.000 units of sales. At 80,000 units of sales, the net profit is $10,000. If the sales volume decreases to 72,000 units, what is the net profit? O $10,000 $2.000 O None of the answer choices is correct O $18.000 O $8,000
The degree of operating leverage for Murphy Company is 8.0 at 80.000 units of sales. At 80,000 units of sales, the net profit is $10,000. If the sales volume decreases to 72,000 units, what is the net profit? O $10,000 $2.000 O None of the answer choices is correct O $18.000 O $8,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![80.000
The degree of operating leverage for Murphy Company is 8.0 at
units of sales. At 80,000 units of sales, the net profit is $10,000. If the sales
volume decreases to 72,000 units, what is the net profit?
O $10,000
Ⓒ$2.000
O None of the answer choices is correct
O $18.000
O $8,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F531d22d6-41e3-4ab6-9b43-fd8dca83c239%2F4453d1f4-4663-4e1e-8737-95d6a053d659%2F15lsnmd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:80.000
The degree of operating leverage for Murphy Company is 8.0 at
units of sales. At 80,000 units of sales, the net profit is $10,000. If the sales
volume decreases to 72,000 units, what is the net profit?
O $10,000
Ⓒ$2.000
O None of the answer choices is correct
O $18.000
O $8,000
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