The Phenomenon That a Dollar in Cost Savings Increases Pretax

question 56

Multiple Choice

The phenomenon that a dollar in cost savings increases pretax profits by a dollar, while a dollar increase in sales increases pretax profits only by the dollar multiplied by the pretax profit margin is known as the:

• A)profit margin.
• B)return on assets.
• C)saving to spending ratio.
• D)profit leverage effect.

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Definitions:

Role Model

An individual whose behavior, example, or success is or can be emulated by others, especially by younger people.

Slogans

Catchy phrases or statements used to express ideas, goals, or advertising messages.

Emotional Contagion

The phenomenon where people absorb and reflect the emotions of those around them, often unconsciously.

Enthusiasm

A state of heightened energy and interest towards a particular activity, idea, or goal.