If Company a Has a Higher Degree of Operating Leverage

question 125

Multiple Choice

If company A has a higher degree of operating leverage than company B,then which of the following statements is true?

• A) Company A has higher variable expenses.
• B) Company A's profits are more sensitive to percentage changes in sales.
• C) Company A is more profitable.
• D) Company A is less risky.

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Definitions:

Timer Files

A collection of settings and configurations associated with timers in a PLC, used to create delays or measure time intervals in control applications.

Program Files

The area of processor memory in which the ladder logic programming is stored.

Data Files

Digital files that store data, which can be accessed or processed by software applications.