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:

Irrigation

The artificial application of water to soil, typically to assist in the growth of agricultural crops in dry areas or during periods of inadequate rainfall.

Hydrological Connection

The relationship and interaction between different bodies of water within the hydrological cycle, including surface water, groundwater, and atmospheric water processes.

Groundwater

The water present beneath the Earth's surface in soil pore spaces and in the fractures of rock formations.

Surface Water

Water that is found on the surface of the earth, such as in lakes, rivers, and ponds.