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As Manager of a Research and Development Firm,you Are Concerned

question 43

Multiple Choice

As manager of a research and development firm,you are concerned about an employee who is extremely unorganized and has struggled with a variety of different tasks you have given him.Recalling what you learned in your cognition class,you are concerned that he might have _______________.


Definitions:

Contribution Margin Ratio

The percentage of each sale that exceeds the variable costs of production.

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the cushion a business has before it incurs a loss.

Operating Leverage

A measure of how sensitive net operating income is to a given percentage change in dollar sales.

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