Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine-hours best explain the

Solution

1.Hotel’s cost structure          Indications in percentage(%)

Revenue                                     $ 2,000,000                          (100)

Less: Variable expenses            $ 1,300,000                            65

                                                    --------------------

Contribution margin                       $700,000                            

Less: Fixed expenses                   $560,000                            28

                                                    ---------------------

Net income                                       $140,000                            7

2.Revenue declines by 30 percent

Revenue                                     $ 1,400,000                    

Less: Variable expenses               $910,000                                                                                    

                                                   ---------------------

Contribution margin                       $490,000                  

Less: Fixed expenses                   $392,000                          

                                                    ---------------------

Net income                                       $98,000          

3.Operating leverage factor when revenue is $2,000,000    

       Operating leverage =    Contribution/ Net income

4.Operating leverage factor when increase in revenue by 25 percent  

increase in revenue by 25 percent=

increase in contribution by 25 percent=

increase in net income by 25 percent  =                                                  

       Operating leverage =    Contribution/ Net income

The cost of corn is set to rise is guaranteed to happen in the corn market.

Option A

Explanation:

Ethanol, a type of renewable fuel, is produced from various organic substances referred to as "biomass." Moreover, approximately 98% of petroleum utilized in the U.S. contains ethanol, frequently in the form of E10, to help minimize air pollutants, which is a mixture of 10% ethanol and 90% gasoline. The oxygenation of fuel

Ethanol derived from corn is the main source of ethanol fuel in the United States, produced from corn biomass.

Maize ethanol is created through the fermentation and distillation process. It remains uncertain if using corn ethanol results in a significant reduction in greenhouse gas emissions compared to gasoline.