The Higher the Operating Leverage Factor, the

question 230

Multiple Choice

The higher the operating leverage factor, the

• A)lesser the impact of volume on operating income.
• B)greater the impact of volume on operating income.
• C)more likely operating income is to stay constant.
• D)none of the above.

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Definitions:

Profit Margin

A financial metric that calculates the amount of earnings exceeding costs, often expressed as a percentage of revenue.

Less Risky Decision

A decision-making approach that prioritizes options with lower potential for negative outcomes or loss.

Mindguards

Individuals within a group who limit access to information to prevent dissent or critical thinking that might challenge the group's consensus.

Protecting

Ensuring safety or defending something from harm, damage, or adverse conditions.