ACME,Inc.reported the Following Income Statement for 2009

question 18

Multiple Choice

ACME,Inc.reported the following income statement for 2009:

If ACME's sales next year increase by 20%,ACME's EBIT will increase

• A) 20%, showing no operating leverage.
• B) 20%, showing no financial leverage.
• C) over 35%, due to operating leverage.
• D) over 35%, due to operating leverage and financial leverage.

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Definitions:

Sexually Transmitted Infection

Infections that are primarily spread through sexual contact, including viruses, bacteria, and parasites.

Brothel

A place of business where people engage in sexual activity with sex workers in exchange for monetary compensation.

Condom

A barrier device commonly used during sexual intercourse to reduce the risk of pregnancy and spreading sexually transmitted infections.

Sex Therapist

is a professional specialized in diagnosing and treating sexual disorders and difficulties through counseling and therapy.