Tanigawa Inc

question 196

Multiple Choice

Tanigawa Inc.has an operating leverage of 8.7.If the company's sales increase by 8%,its net operating income should increase by about:

• A)69.6%
• B)8.7%
• C)108.8%
• D)8.0%

Analyze how cost concepts like marginal cost and average cost are related to output level.

Recognize conditions under which production inputs lead to diminishing returns.

Understand the role of brain structures in memory processes.

Differentiate between types of memory (e.g., short-term, long-term, explicit, implicit).

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Definitions:

Variable Cost

Costs that change in proportion to the good or service that a business produces, such as materials and labor directly involved in production.

Total Cost

The combined amount of all costs incurred during the production of goods or services, incorporating fixed and variable expenditures.

Average Fixed Cost

Costs of production that are stable (not varying with output amount) allocated across the number of units produced.

Fixed Cost

describes expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.