Last Year Avator's Operating Income (EBIT) Increased by 22% While

question 36

Multiple Choice

Last year Avator's operating income (EBIT) increased by 22% while its dollar sales increased by 15%. What is Avator's degree of operating leverage (DOL) ?

• A) 0.68
• B) 2.0
• C) 1.47
• D) 0.32

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Definitions:

Cultural Melting Pot

A metaphor for a society where many different types of people blend together as one, often losing their original cultural identities.

Distinct

Clearly different or set apart in quality or characteristics from others.

Cultural Adaptation

The process through which individuals or groups adjust to and integrate new cultural practices, norms, and values into their lives.

Environmental Pressures

External forces in the environment that can affect the survival and development of an organism or organization.