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.

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Definitions:

K

The symbol for potassium, a soft, silvery-white metallic element that is essential for living cells and important in many industrial processes.

Equilibrium Reaction

A chemical reaction in which the rates of the forward and reverse reactions are equal, resulting in no net change in the concentrations of the reactants and products.

K

K is the chemical symbol for potassium, an essential dietary mineral and electrolyte necessary for various bodily functions, including nerve transmission and muscle contraction.

Acetic Acid

A weak, organic acid with the formula CH3COOH, known for its pungent smell and sour taste, and used in the production of vinegar.