Alpha Corporation Reported the Following Data for Its Most Recent

question 3

Multiple Choice

Alpha Corporation reported the following data for its most recent year: sales, $1,000,000; variable expenses, $600,000; and fixed expenses, $300,000. The company's degree of operating leverage is closest to:

• A) 0.25
• B) 2.0
• C) 4.0
• D) 3.3

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Definitions:

Exporting

The act of selling goods or services produced in one country to buyers in another country.

Domestically Produced Products

Goods manufactured within a country's borders, emphasizing local production and sourcing.

Foreign Markets

Markets outside a company’s home country where it can engage in trade, including exporting, importing, and producing goods or services.

Licensing

A business arrangement where one party allows another to use its trademark, patent, copyright, or technology in exchange for a fee or royalty.