Given answer accounting questions The magnitude of operating leverage for Blue RidgeCorporation is 3.2 when sales are $200,000 and netincome is $36,000. If sales decrease by 6%, netincome is expected to decrease by what amount?

Step 1: Define Operating LeverageThe degree of operating leverage is calculated as part of…

Answered: The magnitude of operating leverage for…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 10P

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If sales increase from P80.000 per year to P140,000 per year, and if the operating leverage factor is 5, then net operating income should increase by:
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If NUBD Company achieves its projections, what will be its degree of operating leverage?
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1
What is AAA Corp.’s projected degree of operating leverage based on the projected sales?
If sales increase from R80 000 per year to R120 000 per year, and if the operating leverage is 5, then net income should increase by: A. 167%. B. 100%. C. 334%. D. 250%.

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The magnitude of operating leverage for Blue Ridge Corporation is 3.2 when sales are $200,000 and net income is $36,000. If sales decrease by 6%, net income is expected to decrease by what amount?