Each of These Purchases Typically Requires a Consumer to Pay

question 55

Multiple Choice

Each of these purchases typically requires a consumer to pay a state sales tax EXCEPT for a(n)

• A) new car.
• B) desktop computer.
• C) restaurant meal.
• D) apartment rent payment.

---

Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.

Variable Cost

Costs that vary directly with the level of production or the volume of output.

Operating Leverage (DOL)

A financial metric indicating the proportion of fixed versus variable costs a company has, which affects its earnings before interest and taxes (EBIT) for every percentage change in sales.

Variable Cost

Costs that vary directly with the level of production or volume of output.