The Following Table Shows the Number C , in Millions $3.04$

question 41

Multiple Choice

The following table shows the number C , in millions, of cars sold in the U.S. years after 2005. Use the regression line for the data to estimate the number of cars sold in 2014.

• A) \(3.04\) million
• B) \(4.11\) million
• C) \(2.87\) million
• D) \(3.87\) million

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Definitions:

Fixed Costs

Expenses that do not vary with the level of production or sales volumes, such as rent, salaries, and insurance premiums.

Operating Leverage

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

Pretax Income

Income earned by a company before taxes are deducted, indicating the profitability of a company's core operations.

Sales Increase

The rise in the amount of products or services sold by a company, usually compared to a previous period.