A Firm Whose Degree of Operating Leverage (DOL) Is Equal

question 72

True/False

A firm whose degree of operating leverage (DOL) is equal to three means that a given percentage change in sales will change earnings per share by three times as much.

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Definitions:

Three Fs of Selling

A sales philosophy that emphasizes the importance of Feelings, Features, and Facts in the process of persuading potential customers.

FAB

Features, Advantages, and Benefits; a sales and marketing strategy that outlines a product's features, explains its advantages over competing products, and details the benefits to the customer.

Forecasts

Predictions or estimates of future events or trends, such as sales, weather, or economic conditions, based on analysis of past and present data.

Relationship with Customer

Relationship with customer involves building and maintaining positive and productive interactions between a business and its customers, crucial for retaining and attracting clientele.