Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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General accounting

Marcus Company has an operating leverage of 4.2. If the
company experiences a sales decrease of 15%, what would be the
approximate percentage change in net operating income?
a. 4.2%
b. 15%
c. -63%
d. -35.7%
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Transcribed Image Text:Marcus Company has an operating leverage of 4.2. If the company experiences a sales decrease of 15%, what would be the approximate percentage change in net operating income? a. 4.2% b. 15% c. -63% d. -35.7%
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