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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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