A Firm Has Fixed Operating Costs of $175,000, Total Sales

question 84

Multiple Choice

A firm has fixed operating costs of $175,000, total sales revenue of $3,000,000 and total variable costs of $2,250,000.The firm's degree of operating leverage is __________ .

• A) 0.81
• B) 4.29
• C) 0.77
• D) 1.30

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Definitions:

Scanner Technology

The use of devices that convert physical text or images into digital form, often used in retail to read barcodes and manage inventory.

Clickstream Data

Information captured about the series of clicks a user makes while navigating through a website, providing insights into user behavior and preferences online.

Observational Research

A method of data collection involving the direct observation of subjects' actions in their natural environment without interference.

Consumer Behaviours

The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.