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:

Appraised Value

The estimated monetary value of a property or asset, determined by a professional appraiser based on its characteristics and market conditions.

Rescission

A remedy in contract law that returns both parties to a contract back to their original positions before the contract was entered into.

Undue Influence

The exercise of improper influence by one person over another to persuade them to act in a way that is contrary to their own interests.

Breach of Contract

The failure, without legal justification, to fulfill one's obligations under a contract.