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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 ________.

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Definitions:

Mexican Revolution

A major armed struggle from 1910 to 1920 that transformed Mexican culture and government, leading to the end of the Porfiriato and the establishment of a constitutional republic.

Sugar Act

A British law enacted in 1764 that imposed a tax on sugar and molasses imported into the American colonies, leading to widespread discontent.

Writs of Assistance

Legal documents that served as general search warrants enabling British officials to search homes and businesses for smuggled goods in colonial America.

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