Goodman Company Has Sales of 3,000 Units at $80 Per

question 56

Multiple Choice

Goodman Company has sales of 3,000 units at $80 per unit.Variable costs are 35% of the sales price.If total fixed costs are $66,000,what is the degree of operating leverage rounded to 2 decimal places?

• A) 0.79.
• B) 0.93.
• C) 2.67.
• D) 1.73.

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Definitions:

Functional Strategy

A specific, focused plan aimed at achieving objectives and improving performance within a particular department or function of an organization.

Functional Strategy

A specific, detailed plan tailored to a department or unit within an organization, aimed at achieving the broader corporate strategies and goals.

Specific Area of Operations

Refers to a designated segment within an organization focused on a particular set of tasks, goals, or objectives, often with its specified strategies and responsibilities.

Strategic Business Unit

A semi-autonomous division within a larger organization, responsible for its own strategy, resources, and performance, focusing on specific market segments.