The magnitude of operating leverage for Roshan Enterprises is 3.2 when sales are $200,000 and net income is $40,000. If sales decrease by 5%, net income is expected to decrease by what amount?
The magnitude of operating leverage for Roshan Enterprises is 3.2 when sales are $200,000 and net income is $40,000. If sales decrease by 5%, net income is expected to decrease by what amount?
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 10P
Related questions
Question
Income is expected to decrease by what amount?
Transcribed Image Text:The magnitude of operating leverage
for Roshan Enterprises is 3.2 when
sales are $200,000 and net income is
$40,000. If sales decrease by 5%, net
income is expected to decrease by
what amount?
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