In an Effort to Combat Groupthink and an Overall Lack

question 9

Multiple Choice

In an effort to combat groupthink and an overall lack of creativity, the group leader assigned Jennifer the job of criticizing ideas, for the sake of argument, throughout the meeting. Jennifer is playing the role of a

• A) maximizer.
• B) devil's advocate.
• C) dialectic.
• D) strategic planner.
• E) dominator.

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Definitions:

Variable Component

An element of cost or expense that varies directly with changes in production volume, business activity, or other drivers.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been deducted, indicating how much contributes to fixed costs and net profit.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating the amount each unit contributes to covering fixed costs and generating profit.

Degree of Operating Leverage

A financial ratio that measures the percentage change in operating income in response to a percentage change in sales.