Expo Manufacturing Inc

question 46

Multiple Choice

Expo Manufacturing Inc. ,is in the process of evaluating a new product using the following information:

What are estimated life-cycle revenues?

• A)$612,000
• B)$1,254,600
• C)$1,897,200
• D)$1,927,800

---

Definitions:

Operating Leverage

Operating leverage describes the extent to which a company can increase its profits by increasing sales, highlighting the fixed versus variable costs structure.

Operating Income

A metric that calculates the profits realized from a business's core operations, excluding deductions of interest and taxes.

Break-even Point

The point at which total revenue equals total costs, resulting in no profit or loss for the business.

Break-even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and one has "broken even".