The Following Information Is for Gable,Inc Based on the Above Data,which Company Has a Higher Operating

question 27

Multiple Choice

The following information is for Gable,Inc.and Harlowe,Inc.for the recent year. $$\begin{array} { l r r r } & \text { Gable, Inc. } & \text { Harlowe, Inc. } \\\text { Sales } & \$ 800,000 & \$ 800,000 \\\text { Variable costs } & \underline{ 400,000 }& \underline{200,000 }\\\text { Contribution margin } & 400,000 & 600,000 \\\text { Fixed costs } & \underline{200,000 } & \underline{ 400,000} \\\text { Income from operations }& \underline{ \$ 200,000 }& \underline{ \$ 200,000}\end{array}$$ Based on the above data,which company has a higher operating leverage?

• A) Gable, Inc.
• B) Harlowe, Inc.
• C) Operating leverage is the same for both companies
• D) Cannot be determined

Understand methods to communicate negative information positively.

Recognize how placement within a document affects the emphasis of information.

Learn strategies to enhance goodwill in business communication.

Avoid the use of preachy language in professional communication.

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Definitions:

Union Bodies

Organizations that represent the collective interests of workers in negotiations with employers regarding wages, work conditions, and rights.

Partnership

A form of business organization defined by the Uniform Partnership Act as “an association of two or more persons who carry on as co-owners of a business for profit.”

Strikebreaking

The act of using non-union workers to replace striking employees in order to keep an organization operational during a labor strike.