If the Degree of Operating Leverage Is 4, Then a One

question 176

Multiple Choice

If the degree of operating leverage is 4, then a one percent change in quantity sold should result in a four percent change in:

• A) unit contribution margin.
• B) revenue.
• C) variable expense.
• D) net operating income.

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Definitions:

Core Characteristics Model

A framework that identifies key job characteristics that can affect employee motivation and satisfaction, including task significance, skill variety, and autonomy.

Job Enrichment

A method to motivate employees by giving them more responsibilities and variety in their jobs, thereby increasing their satisfaction and performance.

Practicing Managers

Individuals who are actively engaged in managing a team, project, or organization, and are responsible for making decisions and guiding the actions of others to achieve objectives.

Expectancy Theory

A motivational theory positing that individuals are motivated to act in certain ways based on their expectations of future outcomes and the attractiveness of those outcomes.