General accounting question Westfield Manufacturing's operating leverage is 8.5. Ifthe company's sales decrease by 9%, its net operatingincome should change by approximately:A) -76.5%B) -9.0%C) -8.5%D) -17.0%

Step 1: Define Operating LeverageOperating leverage measures how a percentage change in sales…

Answered: Westfield Manufacturing's operating…

Principles of Accounting Volume 2

19th Edition

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Author:OpenStax

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Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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None
Only part d

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Westfield Manufacturing's operating leverage is 8.5. If the company's sales decrease by 9%, its net operating income should change by approximately: A) -76.5% B) -9.0% C) -8.5% D) -17.0%