Gamma Corporation has sales of $120,000, a contribution margin of $48,000, and a net operating income of $12,000. The company's degree of operating leverage is:

A. 4.0
B. 10.0
C. 4.8
D. 2.5


Answer: A

Business

You might also like to view...

Always use a comma before a coordinating conjunction

A) True B) False

Business

What is the distance for the shortest route from the carpet plant in Valparaiso to retail outlet in Lansing, Illinois. State the total completion time in minutes

A) 36 B) 37 C) 39 D) 41

Business

?Achievement of the firm's overall goals is part of the marketing concept.

Answer the following statement true (T) or false (F)

Business

Dusty is evaluating two bids to supply fence hardware for the 5 acres of pasture that need to be fenced

Breezy submits a bid of $40 per unit with a defect rate of 3%; Lady's bid is $50 per unit and their product manager estimates the defect rate to be around 0.5%. If a section of fence fails, it costs an average of $500 in losses and herding costs to round up all of the capybaras. Dusty believes it will take 500 units to fence in this pasture configuration. The product manager's uncertainty has Dusty concerned; what defect rate for Lady would make Dusty indifferent between the two suppliers as far as total cost is concerned? A) 1% B) 0.5% C) 0.33% D) 0%

Business