Forde Co Has an Operating Leverage of 4

question 24

Multiple Choice

Forde Co. has an operating leverage of 4. Sales are expected to increase by 12% next year. Operating income is

• A) unaffected
• B) expected to increase by 3%
• C) expected to increase by 48%
• D) expected to increase by 4%

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Definitions:

Mental Illness

A broad range of mental health conditions that affect mood, thinking, and behavior, often requiring clinical intervention.

Cognitive Model

A theory in psychology that emphasizes the importance of internal thoughts and perceptions in determining behavior.

Abnormal Behavior

Patterns of emotion, thought, and action deemed pathological for one or more reasons, including discomfort, dysfunction, distress, or deviation from the norm.

Conscious Mental Processes

Thoughts, perceptions, and feelings of which an individual is aware at any given moment.