John Files a Return as a Single Taxpayer

question 6

Multiple Choice

John files a return as a single taxpayer.In 2012,he had the following items: Determine John's AGI for 2012.

• A) ($5,000).
• B) $0.
• C) $45,000.
• D) $51,000.
• E) None of the above.

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Definitions:

Degree of Operating Leverage

A ratio that measures the sensitivity of a company's operating income to its sales, indicating how revenue growth translates to growth in operating income.

Degree of Operating Leverage

A financial metric that measures the sensitivity of a company's operating income to its sales volume.

Margin of Safety

The amount by which sales can drop before reaching the break-even point, typically expressed as a percentage of current sales.

Sales

The total revenue generated from goods or services sold by a company.