The Main Reason for the Large Inefficiency of the Automobile

question 9

Multiple Choice

The main reason for the large inefficiency of the automobile is

• A) friction in the moving parts.
• B) the kinetic principle.
• C) the second law of thermodynamics.
• D) the first law of thermodynamics.
• E) unburned hydrocarbons.

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Definitions:

Margin of Safety

The difference between actual or expected sales and the break-even point, indicating the amount of sales that can decline before a firm incurs a loss.

Contribution Margin Ratio

A financial metric that represents the contribution margin as a percentage of total sales, assessing the profitability and efficiency of production.

Operating Income

Income generated from normal business operations, excluding expenses such as taxes and interest payments.

Margin of Safety Percentage

A financial metric indicating the difference between actual sales and break-even sales, expressed as a percentage of actual sales.