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.

---

Definitions:

Reinforcers

Stimuli, which after being presented in conjunction with an action, increase the likelihood of that action being repeated in the future.

Color Constancy

The psychological feature that allows the human brain to perceive colors consistently under varying lighting conditions.

Motion Parallax

A depth cue in which objects closer to the observer move faster across the visual field than objects further away, creating a sense of depth.

Retinal Disparity

A perceptual difference between the images projected on the two retinas when viewing the world from slightly different angles, critical for depth perception.