Poutine Company Is Considering Offering Long-Term Contracts to Many of Its

question 26

Multiple Choice

Poutine Company is considering offering long-term contracts to many of its non-contract employees (a switch from variable labour costs to fixed labour costs) .What is the impact of this decision?

• A)The increase in operating leverage results in greater variability in operating income.
• B)The increase in operating leverage results in less variability in operating income.
• C)The decrease in operating leverage results in greater variability in operating income.
• D)The decrease in operating leverage results in less variability in operating income.

---

Definitions:

Resolution Stage

The final phase in some psychological and physiological theories where conflicts or conditions become resolved or return to a baseline state.

Sexual Response Cycle

A four-stage model describing the physiological and emotional processes involved in sexual interaction, including excitement, plateau, orgasm, and resolution.

Rapid Decrease

A swift reduction in quantity, value, or intensity over a short period of time.

Castration

The removal of the testicles in males or ovaries in females; it can also refer to the ending or reduction of power or effectiveness.