Monroe Corporation Currently Sells 150,000 Units a Year at a Price

question 9

Multiple Choice

Monroe Corporation currently sells 150,000 units a year at a price of $4.00 a unit.Its variable costs are approximately 40.0% of sales,and its fixed costs amount to 50% of revenues at its current output level.Although fixed costs are based on revenues at the current output level,the cost level is fixed.What is Monroe's degree of operating leverage in sales dollars?

• A) 4.8000
• B) 6.3000
• C) 7.3200
• D) 5.6400
• E) 6.0000

---

Definitions:

Geographic Departmentation

Relatively self-contained units deliver an organization’s products or services in a specific geographic territory.

Multiple Geographic Regions

Refers to the operations or presence of a business, organization, or entity across various distinct physical locations or areas around the world.

Gender Roles

The roles, behaviors, activities, and traits deemed suitable for men and women by a particular society, as constructed through social processes.

Emotional Closeness

The feeling of being intimately connected to another individual, often characterized by feelings of affection, understanding, and shared experiences or thoughts.