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Frontier Corp

question 28

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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?

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Definitions:

Excise Tax

A tax levied on specific goods, services, or transactions, often to discourage consumption or generate revenue for public purposes.

Cigarette Manufacturers

Companies engaged in the production and sale of cigarettes.

Burden

Often used in the context of taxation or regulations, indicating the weight of responsibility or negative impacts placed on individuals or organizations.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved, often due to market failure or government intervention.

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