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

---

Definitions:

Treaty Of Ghent

The agreement that ended the War of 1812 between the United States and Britain, signed in Ghent, Belgium, in 1814.

Fur Business

An industry involved in the buying, selling, and trading of animal fur for the production of fashion and clothing, historically significant in the economic development of North America and Europe.

New York Real Estate

The market segment dealing with the buying, selling, and renting of properties in New York.

Canton

A term often used to describe administrative divisions or regions in certain countries, notably in Switzerland where it refers to member states of the federation.