If a Company Has a Degree of Operating Leverage of 4.0

question 39

True/False

If a company has a degree of operating leverage of 4.0, that means a 10% increase in sales will result in a 40% increase in operating income.

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Definitions:

Professional Attire

The clothing that meets the formal or semi-formal dress code standards of a workplace or profession.

Annual Sales

The total revenue generated from the sale of goods or services over the course of a year.

CCA Class

A categorization within the Canadian taxation system specifying the depreciation rate applicable to different types of property or equipment for tax purposes.