The Following Data Represent Selected Information from the Comparative Income

question 77

Multiple Choice

The following data represent selected information from the comparative income statement and balance sheet for Dunkin Company for the years ended December 31, 2011 and 2010: The accounts receivable turnover for Dunkin Company for the year ended December 31, 2011, was:

• A)13.45.
• B)12.11.
• C)12.33.
• D)13.32.

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Definitions:

Financial Break-even

The juncture where the total expenses match the total income, resulting in no gain or loss.

Sales Level

The quantity or volume of products or services sold or targeted to be sold within a specific period.

Zero NPV

A situation where the net present value (NPV) of an investment is zero, indicating that the investment is expected to break even and not generate any net profit or loss over time.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in its sales volume, indicating the impact of fixed costs on earnings.