CASE STUDY 27.5 YOU CAN WORK AND GET YOUR EXERCISE AT THE SAME

question 40

Multiple Choice

CASE STUDY 27.5
YOU CAN WORK AND GET YOUR EXERCISE AT THE SAME TIME
For Questions , use the following narrative
Narrative: Case study 27.5 summary
One in five clerical workers walks about a quarter mile a day just to complete routine functions like faxing, copying, and filing, a national survey on office efficiency reports.The survey also shows that the average office worker spends close to 15 percent of the day just walking around the office.

-{Case study 27.5 narrative} Why is it not possible to even evaluate the results of this study?

• A)The results might be biased because they were sponsored by Canon U.S.A.
• B)There is no information on how many people were involved in the study.
• C)We don't know how the data were collected.
• D)All of the above.

---

Definitions:

Cost Structure

The mix of fixed and variable cost used by a firm.

Financial Leverage

Utilizing borrowed funds to amplify the prospective gains of an investment.

Operating Leverage

The degree to which a company uses fixed operating costs, affecting its earnings before interest and taxes (EBIT) with changes in sales.

Breakeven Point

The financial position at which total costs equal total revenues, indicating that there is no net loss or gain.