The Magnitude of Operating Leverage for Blue Ridge Corporation Is

question 148

Multiple Choice

The magnitude of operating leverage for Blue Ridge Corporation is 3.5 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?

• A) $2,160
• B) $7,560
• C) $3,420
• D) $1,260

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Definitions:

Process

A series of actions or steps taken in order to achieve a particular end.

Statistical Process Control

A method used to monitor, control, and ensure the quality of processes by using statistical methods.

Type II Error

A statistical error that occurs when a hypothesis test fails to reject a false null hypothesis, also known as a "false negative."

Standard Deviation

A measure of the dispersion or spread of a set of data from its mean value.