The Following Income Statement Is Provided for Grant, Inc What Is This Company's Magnitude of Operating Leverage?
A) 0

question 169

Multiple Choice

The following income statement is provided for Grant, Inc. $\begin{array}{|l|r|}\hline\text { Sales revenue (1,500@ } \$ 30 \text { per unit) } &\$ 45,000 \\\hline \text { Variable costs }(1,500 @ \$ 14 \text { per unit) } & 21,000 \\\hline \text { Fixed costs } & 16,000 \\\hline \text { Net income } & \$ 8,000\\\hline\end{array}$ What is this company's magnitude of operating leverage?

• A) 0.33
• B) 1.31
• C) 2.00
• D) 3.00

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Definitions:

UNC

Unified National Coarse, a standardized thread designation used in the United States for bolts, screws, and nuts with a coarse thread pitch.

Woodruff Key

A Woodruff key is a semi-circular shaped, removable key that fits into a circular recess in a shaft, allowing it to engage with a corresponding slot in a mating part to prevent relative rotation while permitting axial movement.

Semi-Permanent

A state or condition that is intended to last for a long time but not forever, often applied to structures or installations.

Schematic

A simplified representation of a system or circuit that uses symbols and lines to illustrate structure or function without showing actual layout.