The Richard Company Has an Operating Leverage of 2

question 105

Multiple Choice

The Richard Company has an operating leverage of 2.Sales for 2011 are $100,000 with a contribution margin of $50,000.Sales are expected to be $150,000 in 2012.Operating income for 2012 can be expected to increase by what amount over 2011?

• A) $25,000
• B) 200%
• C) $50,000
• D) 40%

---

Definitions:

Chunking Strategy

A cognitive approach to learning that involves breaking down information into smaller, manageable units or chunks for easier processing and recall.

Association

An organized group of people who share a common interest, goal, or purpose, often working together to achieve objectives.

Imagery

Visual descriptive or figurative language, especially in a literary work, used to create vivid pictures in the mind of the reader.

Due Dates

The specified deadlines by which tasks, assignments, or payments must be completed or submitted.