What Is the Fixed-Cost Expenditure for a Firm with a DOL

question 99

Multiple Choice

What is the fixed-cost expenditure for a firm with a DOL of 4.5 that generates pretax profits of $1 million and has $600,000 in depreciation expense? (Enter the answer in millions)

• A)$1.1 million
• B)$2.1 million
• C)$2.9 million
• D)$3.9 million

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Definitions:

Promotion Tools

Various methods and resources used by businesses to communicate with customers and boost sales, including advertising, sales promotions, and social media.

Social Media

Digital platforms and tools that facilitate the creation and sharing of information, ideas, interests, and other forms of expression via virtual communities and networks.

Do Not Call Registry

A list that individuals can join to avoid receiving unsolicited telemarketing calls, aiming to protect consumer privacy.