According to the Text, During the 1990s

question 22

Multiple Choice

According to the text, during the 1990s,

• A) increases in median income were twice as large in the suburbs as in the cities.
• B) the poverty rate was twice as high in the cities in comparison with the suburbs.
• C) unemployment was nearly 40 percent higher in the cities than in the suburbs.
• D) all of the above

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Definitions:

Margin of Safety

The difference between actual or estimated sales and the sales level necessary to break even, indicating the risk level of not reaching break-even point.

Sales

The total amount of money generated from selling goods or services.

Degree of Operating Leverage

A ratio that measures the sensitivity of a company's operating income to a percentage change in revenue.

High-low Method

A technique used in accounting and finance to estimate variable and fixed components of a cost based on the highest and lowest activity levels.