Solved

The Mildmanner Corporation Has the Following Data for the Current

Question 62

Multiple Choice

The Mildmanner Corporation has the following data for the current year:  Selling price per unit $15 Variable cost per unit $9 Fixed costs $45,000 Units sold 10,000 units \begin{array}{lr}\text { Selling price per unit } & \$15 \\\text { Variable cost per unit } & \$ 9 \\\text { Fixed costs } & \$ 45,000 \\\text { Units sold } & 10,000 \text { units }\end{array}
If sales decrease to 7,500 units in the current year, Mildmanner's operating leverage will be


A) 0.25.
B) 2.00.
C) 4.00.
D) undefined.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions