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