Wham Company Sells Electronic Squirrel Repellants for $60

question 133

Multiple Choice

Wham Company sells electronic squirrel repellants for $60.Variable costs are 60% of sales and total fixed costs are $40,000.What is the firm's magnitude of operating leverage if 2,000 units are sold?

• A) 0.17
• B) 6.00
• C) 2.25
• D) none of these

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Definitions:

Vagus

A cranial nerve that interfaces with the parasympathetic control of the heart, lungs, and digestive tract.

Taste

A sense that detects flavors in substances, primarily recognized via taste buds on the tongue.

Chemical Stimulus

A type of stimulus involving chemicals that can initiate a biological response in an organism or cell.

Olfactory

Relating to the sense of smell or the organs of smell.