If a Firm's DOL Is 4

question 29

Multiple Choice

If a firm's DOL is 4.0 when its profit is $2,000,000 and its depreciation is $500,000, how much fixed cost does it have?

• A)$5,000,000
• B)$5,500,000
• C)$6,000,000
• D)$7,500,000 DOL = 1 +
• 4 = 1 +
• 3 =

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Definitions:

Rounding Rules

Guidelines for adjusting the digits of numbers to a specific place value, often used to simplify numbers or to adhere to a level of precision.

Rounded

Adjusted to a simpler or more general form, often to the nearest whole number.

Median

The middle value in a sorted list of numbers, providing a measure of central tendency that is not skewed by extreme values.

Mean

The average of a set of numbers, calculated by dividing the sum of these numbers by the count of numbers in the set.