A Person Who Normally Weighs 700 N Is Riding in a Rather

question 124

Multiple Choice

A person who normally weighs 700 N is riding in a rather swift elevator that is moving at a constant speed of 9.8 m/s. If this person is standing on a bathroom scale inside the elevator, what
Would the scale read?

• A) 700 N
• B) more than 700 N
• C) less than 700 N
• D) It could be more or less than 700 N, depending on whether the elevator is going up or down.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed versus variable costs a company has.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's earnings before interest and taxes (EBIT) to a percentage change in sales, indicating the impact of fixed costs on profits.

High-low Method

The high-low method is an accounting technique used to estimate the variable and fixed costs of a business based on the highest and lowest levels of activity.