BETA Sells Its Single Product for $14 Per Unit, and Its

question 37

Multiple Choice

BETA sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows:
If BETA increases its volume of sales by 10%, what will happen to its degree of operating leverage?

• A) It will decrease
• B) It will increase
• C) It will stay the same
• D) Cannot be determined

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Definitions:

Inference Forms

Logical sequences in which the conclusion is a direct result of the premises presented.

MP

Short for Member of Parliament, an individual elected to serve as a representative of the citizens in the parliamentary government.

Conj

An abbreviation often used for "conjunction," a logical operation that combines two conditions or statements, resulting in truth only if both elements are true.

Inference Forms

Standardized patterns of reasoning, where specific premises lead to a certain conclusion.