A Firm Has Fixed Operating Costs of $175,000, Total Sales

question 69

Multiple Choice

A firm has fixed operating costs of $175,000, total sales revenue of $3,000,000 and total variable costs of $2,250,000. The firm's degree of operating leverage is ________.

• A) 0.77
• B) 1.30
• C) 0.81
• D) 4.29

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Definitions:

Marx

A reference to Karl Marx, a 19th-century philosopher, economist, and revolutionary socialist whose works greatly influence the study of society and economics.

Dimensions Of Stratification

Various ways in which societies categorize people based on their socioeconomic status, including wealth, power, and prestige.

Weber

Max Weber was a German sociologist, economist, and political scientist known for his theory on the relationship between economics, culture, and religion, particularly the role of Protestantism in the development of capitalism.

Political Status

The position or rank of an individual or group in a political context, which may affect their power, rights, and duties in a society or organization.