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:

Time-Study Procedure

A method used to determine the time taken for a worker to complete a task, with the goal of increasing efficiency.

Worker's Performance

An evaluation of an employee's work output, efficiency, and effectiveness, often measured against predetermined criteria or standards.

Standard

An established norm or requirement in technical systems, often used to ensure consistency, compatibility, and safety in products and processes.

Labour Standards

Regulations and criteria established to ensure safe and fair working conditions for employees.