If the Firm's Degree of Operating Leverage Is 4

question 82

Multiple Choice

If the firm's degree of operating leverage is 4.5,what percentage change in sales will result in a 3% rise in profits?

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

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Definitions:

Group Task

A collaborative effort where individuals come together to achieve a specified goal or complete a project.

Less Effort

Refers to situations or tasks that require minimal physical or mental exertion.

Groupthink

A psychological phenomenon where the desire for harmony in a decision-making group results in an irrational or dysfunctional decision outcome.

Highly Cohesive Group

A group characterized by a strong sense of belonging and unity among its members, often leading to higher levels of cooperation and achievement.