-The Degree of Financial Leverage Is:
A) 1

question 35

Multiple Choice

$$\begin{array} { l r } \text { Sales } ( 100,000 \text { units) } & \$ 1,000,000 \\\text { Variable costs } & \underline { 300,000 } \\\text { Contribution margin } & 700,000 \\\text { Fixed manufacturing costs } & \underline { 250,000 } \\\text { Operating income } & 450,000 \\\text { Interest } & \underline { 60,000 } \\\text { Earnings before taxes } & 390,000 \\\text { Taxes (at } 31 \% \text { ) } & \underline { 120,900 } \\\text { Net Income } & \underline { \$ 269,100 } \\\text { Shares outstanding } & 10,000\end{array}$$
-The Degree of Financial Leverage is:

• A) 1.56x.
• B) 1.79x.
• C) 7.50x.
• D) 1.15x.

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Definitions:

Scientific Management

Is a theory of management that analyzes and synthesizes workflows, with the objective of improving economic efficiency, especially labor productivity.

Self-Management

The ability of an individual to manage their own actions, feelings, and thoughts, often in pursuit of personal goals.

Hackman

Refers to J. Richard Hackman, a renowned researcher in organizational behavior, known for his work on team dynamics, leadership, and group effectiveness.

Autonomous

The ability to operate independently, make decisions, and act without the need for external control or reinforcement.