Frontier Corp

question 28

Multiple Choice

Frontier Corp.sells units for $50,has unit variable costs of $20,and fixed costs of $300,000.If Frontier sells 15,000 units,what is its degree of operating leverage?

• A)0.33
• B)1.67
• C)2.50
• D)3.00

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Definitions:

Stem-and-Leaf Display

A method of displaying data that organizes numbers by their leading digits as 'stems' and their trailing digits as 'leaves'.

Skewed

A term describing data that is not symmetrically distributed, often leaning towards one side, either to the left or right, indicating a deviation from the normal distribution.

Travel Time

The duration taken to move from one location to another, often considered in the contexts of transportation planning, traffic management, and personal planning.

Histogram

A graphical representation of the distribution of numerical data, where the data is divided into bins, and the frequency of data in each bin is depicted by the height of the bar.