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:

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often driven by trade, investment, and technology.

Economic Interdependence

A state in which countries or regions rely on each other economically, due to specialized industries, resources, or trade agreements.

Transformation

A comprehensive change or alteration in structure, appearance, or character, often implying a significant shift or evolution.

Michel Foucault

A French philosopher, historian, and social theorist known for his theories on power, knowledge, and discourse in society.