Based on the Income Statements of the Three Following Retail

question 36

Multiple Choice

Based on the income statements of the three following retail businesses, which company has the highest operating leverage? $\begin{array}{|l|r|r|r|}\hline & \text { Alpha Company } & \text { Beta Company } & \text { Gamma Company } \\\hline \text { Revenue } & \$ 200,000 & \$ 200,000 & \$ 200,000 \\\hline \text { Variable costs } & (95,000) & (155,000) & (125,000) \\\hline \text { Contribution margin } & \$ 105,000 & \$ 45,000 & \$ 75,000 \\\hline \text { Fixed costs } & (80,000) & (20,000) & (50,000) \\\hline \text { Net income } & \$ 25,000 & \$ 25,000 & \$ 25,000 \\\hline\end{array}$

• A) Alpha Company
• B) Beta Company
• C) Gamma Company
• D) They all have same operating leverage

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Definitions:

Gender Lines

The distinctions or boundaries established in a society based on gender, which can influence roles, behaviors, and opportunities.

Expressive Role

A social role focused on emotional support and nurturing, often contrasted with instrumental roles that are about task achievement.

Gender Roles

Social and behavioral norms that are considered appropriate for individuals of a specific sex in the context of a specific culture.

Welfare Queen

A derogatory term that stereotypes certain recipients of welfare assistance as fraudulent and lazy.