The Following Information Relates to Dazie Company $\begin{array}{lr}\text { Sales revenue } & \$ 12,000,000 \\\text { Contribution margin } & 4,800,000 \\\text { Income } & 800,000\end{array}$

question 22

Multiple Choice

The following information relates to Dazie Company: $\begin{array}{lr}\text { Sales revenue } & \$ 12,000,000 \\\text { Contribution margin } & 4,800,000 \\\text { Income } & 800,000\end{array}$ Dazie's operating leverage factor is closest to:

• A) 0.067.
• B) 0.167.
• C) 0.400.
• D) 2.500.
• E) 6.000.

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Definitions:

Mutual Assent

In contract law, the state of mind that exists between an offeror and an offeree once a valid offer has been accepted and once the parties know what the terms are and have agreed to be bound by them. Also known as “a meeting of the minds.”

Unenforceable Contract

A contract that cannot be upheld by a court because of some rule of law.

Complete Contract

A contract that outlines all the relevant and necessary conditions and terms of the agreement between parties for a particular transaction or arrangement.

Privity

Privity refers to a close, direct, or successive relationship between two parties, especially one recognized by law, such as between lessor and lessee or between buyer and seller.