The degree of operating leverage for Adams Inc. is 2. The actual operating income in March is $20,000. If the company expects a 15% decrease in sales in April, what would be the expected operating income in April? Group of answer choices $17,000 $3,000 $6,000 $14,000
The degree of operating leverage for Adams Inc. is 2. The actual operating income in March is $20,000. If the company expects a 15% decrease in sales in April, what would be the expected operating income in April? Group of answer choices $17,000 $3,000 $6,000 $14,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The degree of operating leverage for Adams Inc. is 2. The actual operating income in March is $20,000. If the company expects a 15% decrease in sales in April, what would be the expected operating income in April?
Group of answer choices
$17,000
$3,000
$6,000
$14,000
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