Alpha Corporation Reported the Following Data for Its Most Recent

question 29

Multiple Choice

Alpha Corporation reported the following data for its most recent year: sales, $500,000; variable expenses, $300,000; and fixed expenses, $150,000. The company's degree of operating leverage is:

• A)10
• B)2
• C)4
• D)2.5

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Definitions:

Temporary Tax

A temporary tax is a levy imposed by a government for a specific period before it is automatically revoked or reassessed.

Major Export

The primary good or service sold by a country to foreign markets.

U.S.

The United States of America, a federal republic consisting of 50 states and a federal district.

Unemployment

The situation in which individuals who are able and willing to work cannot find a job.