The Sales and Cost Data for Two Companies in the Transportation

question 11

Multiple Choice

The sales and cost data for two companies in the transportation industry are as follows: X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be:

• A) 4.00
• B) 5.00
• C) 7.00
• D) 6.00
• E) 3.00

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Definitions:

Blue Collar

A description characterizing skilled and semi-skilled workers who perform manual labor or work in service or clerical jobs.

Upper Class

An elite and largely self-sustaining group who possess most of the country’s wealth; they constitute about 1 percent of the U.S. population.

Caste System

A form of social stratification in which status is determined by one’s family history and background and cannot be changed.

Social Mobility

The movement of individuals or groups within the hierarchical system of social classes.