Weis Products Has Fixed Operating Costs of $20 Million and a Variable

question 13

Multiple Choice

Weis Products has fixed operating costs of $20 million and a variable cost ratio of 0.55. Weis has 4 million common shares outstanding and a marginal tax rate of 45%. What is Weis's degree of operating leverage at an expected sales level of $150 million?

• A) 1.00
• B) 1.74
• C) 1.42
• D) 1.32

---

Definitions:

Opinion Approach

A sales technique where the seller starts the conversation by asking for the prospect's opinion to engage them and build rapport.

Safety Equipment

Devices or apparatus designed to protect individuals from harm or accidents.

Sales Presentation

A pitch or demonstration given by a salesperson to a potential buyer, with the aim of promoting and selling a product or service.

Approach Technique

Strategies used by salespeople to initiate contact with potential customers effectively.