If Company a Has a Higher Degree of Operating Leverage

question 29

Multiple Choice

If company A has a higher degree of operating leverage than company B,then:

• A) company A's variable expenses are high.
• B) company A's profits are more sensitive to percentage changes in sales.
• C) company A is more profitable.
• D) company A is less risky.

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Definitions:

Cognitive Schema

A mental framework that organizes and interprets information in the brain, helping to understand and predict the world around us.

Relaxation Chamber

A designed space or device used to facilitate a state of physical and mental relaxation.

Maladaptive Beliefs

Thoughts or belief systems that are counterproductive to the individual's well-being or ability to solve problems effectively.

Unconscious Motives

Drives or desires that influence an individual's behavior without their awareness.