Accounting MCQ
Accounting Chapter 5
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:
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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