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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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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