Marcus Corporation Currently Sells 150,000 Units a Year at a Price

question 81

Multiple Choice

Marcus Corporation currently sells 150,000 units a year at a price of $4.00 a unit.Its variable costs are approximately 30% of sales,and its fixed operating costs amount to 50% of revenues at its current output level.Although fixed costs are based on revenues at the current output level,the cost level is fixed.What is Marcus' degree of operating leverage in sales dollars?

• A) 1.0
• B) 2.2
• C) 3.5
• D) 4.0
• E) 5.0

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Definitions:

Businesses' Justifications

The reasons or arguments businesses present to support decisions, strategies, or practices, often in response to ethical, legal, or public relations challenges.

Drug Testing

The process of checking biological samples to identify the presence of specific drugs or their metabolites.

Off-Work Conduct

Employee behaviors or activities outside of the workplace and work hours that may impact their job performance, reputation, or the employer's image.

Impairment Testing

The process of evaluating assets for potential reduction in value on a company's financial statements.