SXF Sells Its Single Product for $14 Per Unit, and Its

question 16

Multiple Choice

SXF sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows: If SXF increases its volume of sales by 10%, what will happen to its degree of operating leverage?

• A) It will decrease
• B) It will increase
• C) It will stay the same
• D) Cannot be determined

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Definitions:

Digital Millennium Copyright Act

A U.S. law enacted in 1998 to address copyright issues that arise with the internet age, including copyright infringement online.

Anti-Cheating Code

Guidelines or software designed to prevent cheating or dishonesty, often used in academic settings or electronic gaming.

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Federal Cyberstalking Law

U.S. legislation that addresses the crime of stalking or harassing someone through electronic means, such as the internet or email.