Answer the Following Questions Using the Information Below

question 115

Multiple Choice

Answer the following questions using the information below:
Southwestern College is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet:

Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $800. Tickets are expected to be $30 per person. Local business supporters will donate any other items required for the event.
-Which option provides the greatest degree of operating leverage if 600 people attend?

• A) Option one
• B) Option two
• C) Both options provide equal degrees of operating leverage.
• D) Operating leverage is indeterminable.

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Definitions:

Superego

A component of Sigmund Freud's psychoanalytic theory of personality, which represents the ethical or moral self, holding internalized societal norms and ideals.

Ego

In psychoanalytic theory, the part of the personality responsible for dealing with reality while balancing the demands of the id and superego.

Id

In psychoanalytic theory, the part of the psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Conscious Behavior

Actions that are undertaken with awareness and intent, as opposed to automatically or without thought.