Brown Corporation Has Sales of 2,000 Units at $70 Per

question 17

Multiple Choice

Brown Corporation has sales of 2,000 units at $70 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $44,000, the degree of operating leverage is:

• A)0.79
• B)1.40
• C)3.50
• D)2.10

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Definitions:

Senior Moment

A colloquial term for a temporary lapse in memory or confusion that is often humorously attributed to aging.

Erikson

A psychologist known for his theory on the psychological development of human beings, which consists of eight stages from infancy to adulthood.

Integrity

The quality of being honest and having strong moral principles, or the state of being whole and undivided.

Generativity

A stage of adult development involving concern for establishing and guiding the next generation.