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    Exam 2: Introduction to Cost Behavior and Cost Volume Profit Relationships
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    The Degree of Operating Leverage for Murphy Company Is 8
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The Degree of Operating Leverage for Murphy Company Is 8

Question 1

Question 1

Multiple Choice

The degree of operating leverage for Murphy Company is 8.0 at 80,000 units of sales.At 80,000 units of sales,the net profit is $10,000.If the sales volume decreases to 72,000 units,what is the net profit?


A) $2,000
B) $8,000
C) $10,000
D) $18,000

Correct Answer:

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