Manuel Company's Degree of Operating Leverage Is 2

question 66

Multiple Choice

Manuel Company's degree of operating leverage is 2.0.Techno Corporation's degree of operating leverage is 6.0.Techno's earnings would go up (or down) by ___ as much as Manual's with an equal increase (or decrease) in sales.

• A)1/3
• B)2 times
• C)3 times
• D)6 times

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Definitions:

Motives

Internal states that prompt goal-directed behavior, driving individuals to fulfill their needs and desires.

Truth

Conformity to fact or actuality; a statement proven to be or accepted as true.

Honesty

The quality of being truthful, trustworthy, and free from deceit or fraud.

Beauty

A characteristic of a person, object, place, or idea that provides a perceptual experience of pleasure, meaning, or satisfaction, often judged based on culture, art, and aesthetics.