Shelton Company Below Is an Income Statement for Shelton Company

question 113

Multiple Choice

Shelton Company Below is an income statement for Shelton Company:
$\begin{array}{ll}\text { Sales } & \$ 600,000 \\\text { Variable costs } & \underline{(150,000) } \\\text { Contribution margin } & \$ 450,000 \\\text { Fixed costs } & \underline{(300,000) } \\\text { Profit before taxes } & \underline{\$ 150,000}\end{array}$ Refer to Shelton Company.What is Shelton's degree of operating leverage?

• A)1.33
• B)2.00
• C)3.00
• D)4.00

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Definitions:

Holophrase

A single word used by an infant that expresses a complex idea or request, common in the early stages of language development.

Overextension

in language development, refers to the application of a word in a broader context than is appropriate, common in early speech.

Metacognition

The recognition and comprehension of an individual's own cognitive activities, commonly described as "thinking about thinking."

Reflect on your Own Thinking

The meta-cognitive process of analyzing one’s own thoughts, beliefs, and cognitive processes.