Pratt Corporation
Information Relating to the Current Operations of Pratt

question 68

Essay

Pratt Corporation
Information relating to the current operations of Pratt Corporation follows:
$\begin{array}{ll}\text { Sales } & \$ 120,000 \\\text { Variable costs } & (\underline{36,000}) \\\text { Contribution margin } & \$ 84,000 \\\text { Fixed costs } & (\underline{\$ 70,000}) \\\text { Profit before taxes } & \$ 14,000\end{array}$ Refer to Pratt Corporation.Compute Pratt's degree of operating leverage.

---

Definitions:

Magna Carta

A charter of liberties to which the English barons forced King John to give his assent in June 1215 at Runnymede, a foundational document limiting the power of the monarchy.

English Liberties

The fundamental rights and freedoms traditionally enjoyed by English subjects, often cited as a historical basis for modern democratic liberties.

Ideal Government

A theoretical or conceptual government considered to be the best possible, often involving principles of justice, equality, and effective governance.

Religious Dissension

Disagreements and discord within or between religious communities, often leading to disputes, schisms, or conflicts.