At a sales level of $90,000, Blue Company's contribution margin is $24,000. If the degree of operating leverage is 6 at a $90,000 sales level, net operating income must equal:

At a sales level of $90,000, Blue Company's contribution margin is $24,000. If the degree of operating leverage is 6 at a $90,000 sales level, net operating income must equal:




A. $15,000
B. $11,000
C. $4,000
D. $20,000




Answer: C


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