Based on the Following Operating Data, the Operating Leverage Is

question 51

Multiple Choice

Based on the following operating data, the operating leverage is: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ \quad 500,000 \\\hline \text { Variable costs } & 280,000 \\\hline \text { Contribution margin } & 220,000 \\\hline \text { Fired costs } & 180,000 \\\hline \text { Income from operations } & \$ 40,000 \\\hline\end{array}$$

• A)0.18
• B)5.50
• C)1.22
• D)12.5

Explain the concept of opportunity cost and its relationship to the PPF.

Identify factors that can shift or rotate the PPF.

Understand the principle of increasing opportunity costs and its representation on the PPF.

Recognize points of efficiency, inefficiency, and unemployment on the PPF.

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