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The information for Sacramento Corporation is given below. Degree of operating leverage: Break-even revenue: %24 360,000 Variable Expense: 60% of Sales What is the actual net operating income? A. $ 180,000 B. $ 216,000 C. $ 144,000 D. $ 108,000 E. None of the above

The information for Sacramento Corporation is given below. Degree of operating leverage: Break-even revenue: %24 360,000 Variable Expense: 60% of Sales What is the actual net operating income? A. $ 180,000 B. $ 216,000 C. $ 144,000 D. $ 108,000 E. None of the above

FINANCIAL ACCOUNTING
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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If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative to its previous position will: A. shift downward and have a steeper slope. B. shift downward and have a flatter slope. C. shift upward and have a steeper slope. D. shift upward and have a flatter slope. E. None of the above 2 The information for Sacramento Corporation is given below. Degree of operating leverage: Break-even revenue: 2 24 360,000 Variable Expense: 60% of Sales What is the actual net operating income? A. $ 180,000 B. $ 216,000 C. $ 144,000 D. $ 108,000 E. None of the above
Transcribed Image Text:If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative to its previous position will: A. shift downward and have a steeper slope. B. shift downward and have a flatter slope. C. shift upward and have a steeper slope. D. shift upward and have a flatter slope. E. None of the above 2 The information for Sacramento Corporation is given below. Degree of operating leverage: Break-even revenue: 2 24 360,000 Variable Expense: 60% of Sales What is the actual net operating income? A. $ 180,000 B. $ 216,000 C. $ 144,000 D. $ 108,000 E. None of the above
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