Reference: 08-04
the Following Data Relate to a Company That

question 2

Multiple Choice

Reference: 08-04
The following data relate to a company that produces and sells a travel guide that is updated monthly: $$\begin{array} { | l | l | } \hline \text { Fixed costs: } & \\\hline \text { Copy editing } & \$ 6,000 \\\hline \text { Art work } & 2,000 \\\hline \text { Typesetting } & 72,000 \\\hline & \\\hline \text { Variable costs: } & \\\hline \text { Printing and binding } & \$ 3.20 \text { per copy } \\\hline \text { Bookstore discounts } & 4.00 \text { per copy } \\\hline \text { Salespersons' commissions } & 0.50 \text { per copy } \\\hline \text { Author's royalties } & 2.00 \text { per copy } \\\hline\end{array}$$ Each book sells for $20.00. The company sold 8,000 books in June and 10,000 books in July.
-The degree of operating leverage for July is closest to (round your final answer to two decimal places.)

• A)3.48.
• B)8.70.
• C)4.22.
• D)4.48.

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Definitions:

Egypt

A country in North Africa known for its ancient civilization and monumental architecture, including pyramids and the Great Sphinx.

Syria

A country in Western Asia, known for its ancient civilizations, rich cultural heritage, and recent conflicts.

Dura-Europos

An ancient city on the Euphrates river, known for its well-preserved ruins that offer insights into various cultures including the Romans, Persians, and others.

Arch of Constantine

An ancient Roman triumphal arch in Rome, commemorating Emperor Constantine I's victory at the Battle of Milvian Bridge in 312 CE.