Mark Company,Inc

question 107

Multiple Choice

Mark Company,Inc.sells electronics.The company generated sales of $45,000.Contribution margin is $20,000 and net income is $4,000.Based on this information,the magnitude of operating leverage is:

• A) 2.25
• B) 11.25
• C) 5.00
• D) 6.25

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Definitions:

Intellectual Property

Legal rights that protect creations of the mind, such as inventions, literary and artistic works, designs, symbols, and names used in commerce.

Licensing

The granting of a legal permission by one entity to another, allowing the latter to engage in an activity that is under the control or ownership of the former.

Wholly Owned Subsidiaries

Companies whose entire share capital is held by another company, typically referred to as the parent company.

Intellectual Property

Legal rights that protect creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and images used in commerce.