If Sales Amounted to $375,000,variable Costs Are 70% of Sales,and

question 63

Multiple Choice

If sales amounted to $375,000,variable costs are 70% of sales,and operating income is $50,000,what is the operating leverage?

• A)8.125
• B)12.750
• C)5.688
• D)2.250

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Definitions:

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and within a specified period.

National Income

The total income earned by a nation's people and businesses, including wages, rent, interest, and profits.

Discretionary Fiscal Policy

involves deliberate changes by government in taxation and spending policies intended to stabilize or stimulate the economy.

Legislative Changes

Modifications or amendments made to existing laws or the introduction of new laws by a governing body or legislature.