Ford Company the Following Information Relates to Financial Projections of Ford

question 29

Multiple Choice

Ford Company The following information relates to financial projections of Ford Company:
$\begin{array}{ll}\text { Projected sales } & 75,000 \text { units } \\\text { Projected variable costs } & \$ 3.00 \text { per unit } \\\text { Projected fixed costs } & \$ 60,000 \text { per year } \\\text { Projected unit sales price } & \$ 8.00\end{array}$ Refer to Ford Company.If Ford Company achieves its projections,what will be its degree of operating leverage?

• A)6.25
• B)1.19
• C)1.68
• D)3.00

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Definitions:

Mere Exposure Effect

The mere exposure effect is a psychological phenomenon where people tend to develop a preference for things simply because they are familiar with them.

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