What Percentage Change in Sales Occurs If Profits Increase by 3

question 30

Multiple Choice

What percentage change in sales occurs if profits increase by 3% when the firm's degree of operating leverage is 4.5?

• A) 0.33%
• B) 0.67%
• C) 3.03%
• D)1.50%

---

Definitions:

Psychopharmacological

Pertaining to the study of the effects of drugs on the mind and behavior, often in relation to the treatment of psychiatric disorders.

Alcohol Abuse

The excessive consumption of alcohol in a way that negatively affects one's health, relationships, or responsibilities.

Energy Imbalanced

A state where there is a mismatch between the energy expended and the energy consumed, impacting health and physical condition.

Anxiety Disorder

A mental health condition characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.