Brandi's Bakery's Current Degree of Operating Leverage Is 15

question 159

Multiple Choice

Brandi's Bakery's current degree of operating leverage is 15.Additional advertising is expected to increase her sales by 8%.What is the expected impact on operating income?

• A)12%
• B)53%
• C)120%
• D)187%

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Definitions:

Payment

The transfer of money, goods, or services in exchange for a product, service, or to fulfill a legal obligation such as a debt.

Payment Terms

Conditions under which a seller will complete a sale, often specifying the period allowed to a buyer to pay off the amount due.

Invoice

A document issued by a seller to a buyer, detailing the products or services sold, their quantities, and the agreed prices for the transaction.

Payment

The transfer of money or goods in exchange for a product, service, or to fulfill a legal obligation.