Which of the Following Is True of Operating Leverage

question 1

Multiple Choice

Which of the following is true of operating leverage?

• A)Operating leverage increases as profit increases.
• B)Companies with higher operating leverage experience higher increases in profit when sales increase.
• C)Operating leverage decreases as total variable costs decrease.
• D)New technology generally decreases operating leverage.

Recognize the concept of seriation and its significance in cognitive development.

Distinguish between different developmental stages and their characteristics.

Define and understand the importance of neurodiversity in cognitive development.

Identify factors contributing to childhood obesity and its prevalence.

---

Definitions:

Net Operating Income

A measure of a company's profitability, calculated as gross revenue minus operating expenses, not including taxes and interest.

Break-even

The point at which total costs equal total revenues, resulting in no net loss or gain for the business.

Monthly Unit Sales

The number of units of a product sold in a particular month.

Break-even Point

The financial state in which total revenues equal total expenses, and there is no profit or loss.