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:

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brainstem down the back, transmitting nerve signals to and from the brain.

Sensory Neurons

Nerve cells responsible for converting external stimuli from the organism's environment into internal electrical impulses.

Resting Potential

Membrane potential of a neuron at rest.

Millivolts

A unit of electric potential or electromotive force equal to one thousandth of a volt, commonly used in measuring electrical potentials in cells and batteries.