A company with a completely fixed cost structure will have operating leverage of 1.
Answer the following statement true (T) or false (F)
False
The sales revenue of a company with a completely fixed cost structure will equal its contribution margin. Since the magnitude of operating leverage equals the contribution margin divided by net income, the magnitude of the degree of operating leverage of a company with a completely fixed cost structure cannot be determined without additional information.
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While trust is one key to overcoming concerns about privacy and security, most consumers do not know information can be tracked and recorded and thus are not worried
Indicate whether the statement is true or false
Bluetooth is considered a _____ technology, because it typically supports a network used by only one person.
A. metropolitan area network B. personal area network C. wide area network D. local area network
The ratio (proportion) of the sales volumes for the various products sold by a company is called the:
A. Sales mix. B. Inventory cost ratio. C. Production ratio. D. Relevant mix. E. Current product mix.
Which one of the following statements about break-even analysis, as we applied it to evaluating products or services, is BEST?
A) Break-even analysis assumes that the cost function is linear and consists of fixed costs plus variable costs times volume. B) The break-even quantity will increase when the change in variable cost per unit is identical to the change in unit price. C) Increasing the price, while keeping the variable cost per unit constant, increases the break-even quantity. D) Increasing the fixed costs tends to decrease the break-even quantity.