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:

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The governing body of Cuba, characterized by a one-party socialist system under the Communist Party, focusing on centralized planning and state control.

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A statistical measure reflecting the percentage of the population whose income falls below the poverty line, taking into account the minimum level of income required for basic living standards.