Centex, a Producer of Telephone Systems for Small Businesses, Has

question 30

Multiple Choice

Centex, a producer of telephone systems for small businesses, has current sales of $43 million and variable operating costs of $27.95 million. Centex expects to increase sales in the coming year by 15% while keeping fixed operating costs constant at $9.1 million. What is the DOL for Centex?

• A) 3.3
• B) 2.5
• C) 7.2
• D) 1.0

---

Definitions:

Sediments

Particles of rock, mineral, or organic material deposited by water, wind, or ice, often forming layers on Earth's surface.

Drainage Divide

The boundary between adjacent drainage basins.

Drainage Basin

The area of land drained by a river and its tributaries, also known as a watershed or catchment area.

High Ground

An area of elevated terrain that can provide strategic advantages, such as better visibility or defense, and is often sought after in military and construction contexts.