- in Figure 24

question 122

Multiple Choice

- In Figure 24.2,total revenue at the profit-maximizing rate of output is

• A)$22.00.
• B)$6.40.
• C)$4.00.

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Definitions:

Degree of Operating Leverage

A financial metric that measures the sensitivity of a company's operating income to its sales.

Variable Cost

Costs that vary directly with the level of production or business activity, such as materials and labor.

Variable Cost

Costs that change in proportion to the level of goods or services a company produces.