A Managerial Preference for a Very Low Degree of Operating

question 65

Multiple Choice

A managerial preference for a very low degree of operating leverage might indicate that

• A)an increase in sales volume is expected.
• B)a decrease in sales volume is expected.
• C)the firm is very unprofitable.
• D)the firm has very high fixed costs.

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Definitions:

Double-Wall Steel

A construction method using two layers of steel to provide added strength, insulation, or protection against leaks or external damage.

Copper Clad

A material or board that is coated with a layer of copper, often used in the manufacturing of printed circuit boards (PCBs).

Brake Fluid

A hydraulic fluid used in brake systems to transfer force into pressure.

Master Cylinder

The main component in a vehicle's brake system that converts pedal pressure into hydraulic pressure to apply the brakes.