If Four-Wheel Drive Capability Is Weighed at 40 on Relative

question 42

Multiple Choice

If four-wheel drive capability is weighed at 40 on relative importance,and your truck scores 8 out of 10,while the three competitors score 7,6,and 6,respectively,your truck has a relative advantage score of ________.

• A)4
• B)12
• C)27
• D)40
• E)80

---

Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to its revenue changes, indicating the proportion of fixed versus variable costs.

Initial Cash Outlay

The initial funds required for an investment or project, including costs such as acquisition, setup, and related expenses.

Operating Leverage

The degree to which a firm or project can increase operating income by increasing revenue, a measure of how sales growth translates to growth in operating income.

Forecasting Error

The difference between the actual outcome and the predicted value in a forecast.