If the Firm's Degree of Operating Leverage Is 3

question 99

Multiple Choice

If the firm's degree of operating leverage is 3.8,what percentage change in sales will result in a 13.8% fall in profits?

• A) 0.28%
• B) −2.75%
• C) −3.63%
• D) 10.00%

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Definitions:

Neurons

Specialized cells within the nervous system that transmit information to other nerve cells, muscle, or gland cells.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse, from one neuron to another target neuron, muscle cell, or gland cell.

Myelin Sheaths

Fatty coverings on the axons of some neurons that help speed neural impulses.

Degeneration

The process by which tissue deteriorates over time, losing structure and function, often associated with diseases and aging.