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Last Year Avator's Operating Income (EBIT) Increased by 22 Percent

question 8

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Last year Avator's operating income (EBIT) increased by 22 percent while its dollar sales increased by 15%.What is Avator's degree of operating leverage (DOL) ?


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Ability-to-pay Principle

A tax principle stating that taxes should be levied according to an individual's or entity’s capacity to pay, typically measured by income or wealth.

Constitutional

Relating to the system of beliefs and laws that governs the organization and operation of a state or organization, typically documented in a written constitution.

Public Goods

Public goods are characterized by their non-excludability and non-rivalrous consumption, meaning they can be used by everyone and one person's use does not diminish another's, such as clean air or public parks.

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