Various Financial Data for SunPath Manufacturing for 2011 & 2012

question 45

Multiple Choice

Various financial data for SunPath Manufacturing for 2011 & 2012 follow. What is the percentage change in the labor partial productivity measure for SunPath between 2011 & 2012?

• A)- 9.22
• B)2.33
• C)- 0.53
• D)2.88
• E)10.39

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Definitions:

Total Leverage

The combined effect of using both operating and financial leverage on a company's earnings per share.

Financial Leverage

Employing leveraged capital to enhance the expected returns on an investment.

Operating Leverage

The degree to which a company uses fixed operating costs, whereby a small change in sales significantly affects profitability.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volume, emphasizing the impact of fixed costs.