The Degree of Operating Leverage Has Which of the Following

question 1

Multiple Choice

The degree of operating leverage has which of the following characteristics?

• A)The closer the firm is operating to the breakeven quantity, the smaller the DOL.
• B)A change in quantity demanded will produce the same percentage change in EBIT as an identical change in price per unit of output, other things held constant.
• C)The DOL is not a fixed number for a given firm, but will depend upon the time zero values of the economic variable Q (Quantity), P (Price), and V (Volume).
• D)The DOL relates the change in net income to the change in operating income.
• E)If the firm has no debt, the DOL will equal 1.

---

Definitions:

Legal Institutions

Structures and systems, including courts and law enforcement, established to enforce and administer laws and justice.

Labor Force

The total number of people employed or actively seeking employment in a given economic area.

Right to Privacy

The human right to keep personal information confidential and protected from unauthorized disclosure, ensuring individuals' freedom from intrusion.

Privacy Legislation

Laws designed to protect individuals' personal information from unauthorized use or disclosure.