The Magnitude of Operating Leverage for Forbes Corporation Is 1

question 53

Multiple Choice

The magnitude of operating leverage for Forbes Corporation is 1.8 when sales are $200,000 and net income is $24,000.If sales increase by 5%,what is net income expected to be?

• A) $25,200
• B) $26,160
• C) $24,667
• D) $43,200

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Definitions:

Wiring Diagram

A wiring diagram is a simplified conventional pictorial representation of an electrical circuit, showing the components of the circuit and their connections.

Logical Operation

An operation in computational and digital systems that is based on binary inputs and yields a binary output, following logical principles.

Control Circuit

An electrical circuit designed to control the operation of a main power circuit, often used in applications like motor starts and stops.