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:

Data-based Problem

A challenge or issue that primarily relies on data analysis and interpretation for its resolution.

Top Level Management

Refers to the highest-ranking executives who are responsible for overseeing the entire organization and making strategic decisions.

Team Participation

The act of being involved and contributing to the goals and activities of a team.

Multi-attribute Utility Analysis

A decision-making process that evaluates and compares the utility of different options based on several attributes or criteria.