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

Differentiate between total and per-unit cost behaviors for variable and fixed costs.

Grasp the significance of the relevant range in cost analysis.

Identify examples of variable, fixed, and mixed costs in production.

Recognize the importance of selecting the proper activity base for costing purposes.

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Definitions:

Disturbed Sleep Pattern

A disruption in an individual's sleep cycle, leading to insufficient rest and affecting overall health and well-being.

Guided Imagery

A relaxation technique that involves following verbal instructions to imagine a peaceful scenario in one's mind, aiming to reduce stress and improve well-being.

Exercise

Physical activity that is planned, structured, and repetitive for the purpose of conditioning the body.

Caffeinated Beverage

Drinks that contain caffeine, a stimulant that can enhance alertness and energy levels.