Assume Sales Volume of 3,000 Units, Unit Variable Cost of $3

question 15

Multiple Choice

Assume sales volume of 3,000 units, unit variable cost of $3, fixed costs of $15,000.What is operating leverage?

• A)60%
• B)37.5%
• C)20%
• D)62.5%
• E)1.6%

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Definitions:

Confidence Interval

A Confidence Interval is a range of values derived from sample statistics that is likely to contain the true population parameter at a given confidence level.

Population Mean

The average value of a set of characteristics (e.g., measurements, scores) for an entire population, calculated as the sum of all values divided by the number of values.

Confidence Interval

A statistical estimate of the range within which an unknown population parameter lies, calculated to express the certainty of its covering the true value.

Confidence Interval

A series of values, based on sample statistics, presumed to include the unknown value of a population parameter.