The Degree of Operating Leverage for Murphy Company Is 8

question 1

Multiple Choice

The degree of operating leverage for Murphy Company is 8.0 at 80,000 units of sales.At 80,000 units of sales,the net profit is $10,000.If the sales volume decreases to 72,000 units,what is the net profit?

• A) $2,000
• B) $8,000
• C) $10,000
• D) $18,000

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Definitions:

Inducible Operon

A genetic regulatory system found in bacteria that can be activated or repressed in response to specific environmental conditions, allowing adaptation to the environment by controlling gene expression.

Molecular Switch

A molecular mechanism wherein a molecule changes its structure in response to environmental signals, leading to a functional change.

Gene Expression

The process by which information from a gene is used to synthesize functional gene products (often proteins) that can affect a cell's structure and function.

Promoter

The nucleotide sequence in DNA to which RNA polymerase attaches to begin transcription.