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

question 5

Multiple Choice

Monroe 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 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's degree of operating leverage in sales dollars?

• A)3.1588
• B)3.3250
• C)3.5000
• D)3.6750
• E)3.8588

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Definitions:

Publication Bias

The tendency of scientific journals preferentially to publish studies with strong results.

Manipulate Datasets

The process of changing or adjusting data in order to analyze it, correct errors, or draw specific conclusions.

Research Process

The systematic series of actions necessary to undertake and complete research activities, from the identification of a research problem to the presentation of results.

Correlation Coefficient

A statistical measure that indicates the extent to which two or more variables fluctuate together.