-The Degree of Operating Leverage Is:
A) 1

question 103

Multiple Choice

$\begin{array}{lr}\text { Sales }(75,000 \text { units }) & \$ 750,000 \\\text { Variable costs } & \underline{225,000} \\\text { Contribution margin } & 525,000 \\\text { Fixed manufacturing costs } & \underline{187,500}\\\text { Operating income } & 337,500 \\\text { Interest } & \mathbf{7 5 , 0 0 0} \\\text { Earnings before taxes } & 262,500 \\\text { Taxes (at } 31 \% \text { ) } & 81.375\\\text { Net income }&\$181,125\\\text { Shares outstanding }&15,000\end{array}$
-The Degree of Operating Leverage is:

• A) 1.43x.
• B) 1.56x.
• C) 3.33x.
• D) 2.22x.

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Definitions:

Vestibular Sense

The sensory system that provides the leading contribution to the sense of balance and spatial orientation for the purpose of coordinating movement with balance.

Kinesthesia

Kinesthesia is the sensory ability to perceive and recognize the movement and position of one's body and limbs, without using sight.

Deactivation

The process of turning off or disabling a system or chemical reaction.

Stimulus Energies

Various forms of energy, such as light, sound, and touch, that can elicit a response from an organism or a sensor.