If a Firm Has a Degree of Operating Leverage (DOL)

question 17

Multiple Choice

If a firm has a degree of operating leverage (DOL) that is greater than 1.0, then it means that a 1.0 percent change in _____ will cause a change in earnings before interest and taxes (EBIT) that is _____ 1.0 percent.

• A) earnings per share; greater than
• B) net income; greater than
• C) net operating income; less than
• D) sales; greater than
• E) fixed costs; less than

Explore the historical shifts in emotional investment within family dynamics and societal impact.

Understand the concept of absolute and comparative advantage in international trade.

Understand the shape and implications of the production possibilities curve.

Recognize the role and determination of opportunity costs in the framework of international commerce.

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Definitions:

SWOT Analysis

SWOT Analysis is a strategic planning tool used to identify an organization's Strengths, Weaknesses, Opportunities, and Threats.

Gantt Chart

A visual tool used for project management, showing activities or tasks plotted against time, often used to monitor progress.

Pert Chart

A project management tool that outlines the tasks involved in a project, their sequence, and the time required for each, facilitating the identification of the critical path for project completion.

Market Development

The process of expanding into new markets or segments to increase the reach and sales potential of a company's products or services.