A Company Experienced a 12 % Increase in Earnings Before

question 66

Multiple Choice

A company experienced a 12 % increase in earnings before interest and taxes and a 3 % increase in sales. What is the degree of operating leverage for this company?

• A) 36
• B) 6
• C) 4
• D) 9

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Definitions:

Dinosaurs

Extinct reptiles known for their varied sizes and shapes that lived on Earth during the Mesozoic Era.

Marsupials

A group of mammals characterized by giving birth to relatively undeveloped offspring that typically complete their development in an external pouch.

Opossum

is a type of marsupial found in the Americas, known for playing dead as a defense mechanism.

Monotremes

Egg-laying mammals such as the duck-billed platypus of Australia.