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

---

Definitions:

Individual

A single human being distinct from a group, class, or family.

Job Performance

The effectiveness and efficiency with which an employee performs their job duties.

Organisational Productivity

The efficiency with which an organization can convert inputs into outputs, maximizing resource usage for optimal performance.

Task Contributions

The specific inputs or efforts an individual provides towards completing a task or reaching a team goal.