Alpha Corporation Reported the Following Data for Its Most Recent

question 3

Multiple Choice

Alpha Corporation reported the following data for its most recent year: sales, $1,000,000; variable expenses, $600,000; and fixed expenses, $300,000. The company's degree of operating leverage is closest to:

• A) 0.25
• B) 2.0
• C) 4.0
• D) 3.3

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Definitions:

Encoding

The process by which information is transformed into formats that can be stored in memory.

Automatization

The process by which tasks become automatic after extensive practice, requiring less cognitive effort to perform.

Storage

In the context of cognition, refers to the retention of information in the memory over time.

Retrieval

The process of accessing and bringing into consciousness information stored in memory.