Calculation Of Net Operating Income

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Question

At a sales level of $83,000, Blue Company's contribution margin is $31,000. If the degree of operating leverage is 4 at a $83,000 sales level, net operating income must equal:

a. $13,000

b. $7,750

c. $20,750

d. $23,250

Summary

The question belongs to Accounting and it discusses about calculation of net operating income.

Total Word Count 13

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