The Degree of Operating Leverage Can Be Multiplied by a Change

question 37

True/False

The degree of operating leverage can be multiplied by a change in sales to determine the change in profit.

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Definitions:

Investment

The practice of dispensing finances with the goal of making a profit or generating income.

Years

A unit of time equal to 365 days (or 366 days in a leap year) used to measure duration or age.

Total Dollar Return

The overall financial gain or loss on an investment, including capital gains, interest, dividends, and distributions, calculated in absolute dollar terms.

Shares

Instruments of corporate or financial asset ownership, shares entitle owners to a proportional division of profits, paid as dividends, upon declaration.