If Fixed Costs for Watts Corporation for the Current Year

question 17

Multiple Choice

If fixed costs for Watts Corporation for the current year total $800,000, widgets are sold at $25 per unit, total variable costs are $1,200,000, how much is operating leverage?

• A)40.0%
• B)66.7%
• C)25.0%
• D)60.0%

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Definitions:

Receptor

A protein molecule that receives and responds to chemical signals, such as hormones or neurotransmitters.

Mechanism

A system or structure that performs a specific function or process, often referring to the mechanical or biochemical processes in scientific contexts.

Longitudinal

Pertaining to the length; running along the long axis of a body or structure.

Esophagus

The muscular tube that connects the throat (pharynx) with the stomach, responsible for transporting food and liquids.