The Following Income Statement Is Provided for Grant,Inc What Is This Company's Magnitude of Operating Leverage?
A) 0

question 53

Multiple Choice

The following income statement is provided for Grant,Inc. $\begin{array}{c}\begin{array}{|l|}\hline \text {Sales revenue \( (1,500(a, \$ 30 \) per unit) }\\\hline \text {Variable costs \( (1,500 @ \$ 14 \) per unit) }\\\hline \text {Fixed costs}\\\hline \text {Net income}\\\hline \end{array}\begin{array}{r|}\hline\$ 55,000 \\\hline21,000 \\\hline16,000 \\\hline \$ \quad 8,000\\\hline \end{array}\end{array}$
What is this company's magnitude of operating leverage?

• A) 0.33
• B) 1.31
• C) 2.00
• D) 3.00

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Definitions:

Homeostasis

Maintenance of a constant or static condition of internal environment.

Internal Environment

Refers to the conditions and processes within an organism or organization that contribute to its functioning.

Appropriate Tasks

Activities or duties that are suitable or fitting for a specific person, situation, or environment.

Anterior

Before or in front of.