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:

Lincoln

Abraham Lincoln, the 16th President of the United States, who led the country during the Civil War and is credited with emancipating the slaves.

Savannah

A coastal city in the state of Georgia, known for its well-preserved historic district, cobblestone squares, and significant role in the American Civil War.

Re-elected

Refers to the act of being elected again to a position or office, typically after an initial or preceding term.

Sherman And Sheridan

Two Union generals, William Tecumseh Sherman and Philip Sheridan, known for their strategies and roles in the American Civil War that contributed significantly to the defeat of the Confederate States.