Forde Co Has an Operating Leverage of 4

question 24

Multiple Choice

Forde Co. has an operating leverage of 4. Sales are expected to increase by 12% next year. Operating income is

• A) unaffected
• B) expected to increase by 3%
• C) expected to increase by 48%
• D) expected to increase by 4%

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Definitions:

Implicit Memory

A form of memory where past experiences assist in executing a task without deliberately recalling these past events.

Semantic Memory

A type of long-term memory involving the capacity to remember meanings, factual information, and general knowledge about the world.

Episodic Memory

The type of long-term memory that involves the recollection of specific events, situations, and experiences, including contextual details such as time and place.

Knitting

A method by which yarn is manipulated to create a textile or fabric, often used in making clothes.