Question 10 (2.5 points) A company with a high operating leverage will experience The same percentage change in operating income as a result of a percentage change in sales. A large percentage change in operating income as a result of a small percentage change in sales. A small percentage change in operating income as a result of a small percentage change in ales. A small percentage change in operating income as a result of a large percentage change in sales. Question 14 (2.5 points) Callicott Corporation produces a product that sells for $120 per unit. The product's current sales are 25,400 units and its break-even sales are 16,000 units. The margin of safety as a percentage of sales is closest to: 37% 73% 63% 27% Question 16 (2.5 points) Benny Books sells first edition books. Benny purchases the books from his supplier for $100 a book and sells them through his website for $225 a book. Benny's fixed costs are $48,375. Benny's breakeven point in sales dollars is nearest to O $195,750. O $60,300 $87,075. $156,600. Previous Page Next Page Page 16 of 40 Question 17 (2.5 points) Children's World Toy Shop is an on-line toy store specializing in hand made stuffed animals. Children's World sold 4,000 Donny the Dragon stuffed toys during April and 6,000 during May. Shipping costs for the two months were $12,000 and $16,800 respectively. Using these two months' data, the shipping cost function is best estimated as ($2.40 x number of toys sold) + $2,400 O ($3 x number of toys sold) + $2,880 O ($0.50 x number of toys sold) + $10,000 ($2 x number of toys sold) + $70,000