The Profit Leverage Effect (Ratio)is Calculated by

question 15

Multiple Choice

The profit leverage effect (ratio) is calculated by

• A) dividing 1.0 by the profit margin.
• B) dividing pretax earnings by the cost of goods sold.
• C) dividing sales by the cost of goods sold.
• D) none of the above.

---

Definitions:

Tactile Corpuscle

A type of mechanoreceptor found in the dermal papillae of the skin, sensitive to light touch and texture.

Melanocyte

A cell located in the basal layer of the epidermis that produces melanin, a pigment responsible for skin and hair color.

Keratinocyte

A predominant cell type found in the outermost layer of the skin, responsible for producing keratin, a protein that contributes to skin, hair, and nail strength.

Dendritic Cell

A type of immune cell with a key role in initiating and regulating the immune response, capable of presenting antigens to T cells.