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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? O $10,000 $2.000 O None of the answer choices is correct O $18.000 O $8,000

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? O $10,000 $2.000 O None of the answer choices is correct O $18.000 O $8,000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4BE
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80.000 The degree of operating leverage for Murphy Company is 8.0 at 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? O $10,000 Ⓒ$2.000 O None of the answer choices is correct O $18.000 O $8,000
Transcribed Image Text:80.000 The degree of operating leverage for Murphy Company is 8.0 at 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? O $10,000 Ⓒ$2.000 O None of the answer choices is correct O $18.000 O $8,000
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