Which One of the Following Offers the Most Plausible Scenario

question 93

Multiple Choice

Which one of the following offers the most plausible scenario for a firm that maintained a constant degree of operating leverage when its level of fixed costs doubled?

• A) Depreciation expense increased.
• B) The variable cost percentage decreased.
• C) Sales revenues declined.
• D)Pretax profits decreased.

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Definitions:

Square Root

A value that, when multiplied by itself, gives the original number, representing the inverse operation of squaring a number.

Simplify Expression

The process of rewriting an expression in a simpler or more compact form without changing its value.

Square Root

A specific value that, when it is multiplied by itself, reproduces the initial figure.

Subtraction

A mathematical operation that represents the operation of removing objects from a collection.