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:

Collectivistic Cultures

Societies that prioritize the group over the individual, emphasizing interdependence, family ties, and social harmony.

Neuroticism

A personality trait characterized by moodiness, anxiety, and emotional instability.

Uncertainty And Ambiguity

Situations or conditions where information is incomplete, leading to unclear paths or outcomes.

Extraversion

A personality trait typified by sociability, talkativeness, assertiveness, and excitability; extraverts draw energy from interacting with others.