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%

---

Definitions:

Information technology

The use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Metrics

Quantifiable measures that are used to track and assess the status or performance of a project, activity, or organizational goal.

Goals and objectives

Target outcomes or achievements a person or organization aims to accomplish within a specific timeframe.

Service implementation

Refers to the process of putting a designed service into operation, ensuring it meets the intended goals and needs of its users.