Econ Pty Ltd Produced and Sold 45 000 Units of a Single

question 35

Multiple Choice

Econ Pty Ltd produced and sold 45 000 units of a single product last year. Data concerning the year's profit and loss statement is as follows:
What was Econ's operating leverage?

• A) 4
• B) 5
• C) 6
• D) 7

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Definitions:

Per-Bushel Profit

The financial gain earned by selling a bushel (a unit of measure for volume) of agricultural produce, after subtracting the cost of production.

Profits

The financial gain obtained when revenue from sales exceeds costs and expenses associated with operating a business.

Farmer

Someone who works in the agricultural sector, producing living items for nourishment or foundational substances.

Produce

To create or manufacture goods for sale or consumption.