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:

Common

Referring to something usual, shared, or widespread; often contrasted with what is unique or uncommon.

Strong Cultures

Corporate or organizational cultures that are highly cohesive, with shared values and norms guiding employee behavior and contributing positively to the organization's performance.

Flexible

Capable of adapting to changes and varying circumstances without significant difficulty, often considered an advantageous trait in individuals and organizations.

Relaxed

A state or condition where there is an absence of tension or anxiety, often characterized by calmness and ease.