Operating Leverage Is

question 117

Multiple Choice

Operating leverage is

• A) the difference between sales and variable expense.
• B) the use of fixed costs to extract higher percentage changes in profits as sales activity changes.
• C) the portion of each sales dollar available to cover fixed costs and provide for profit.
• D) visually portrays the relationship between profits and units sold.
• E) none of these

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Definitions:

Working Conditions

The environment, terms, and circumstances under which an individual works, including aspects such as hours, workspace, and safety.

Growth Needs

Are desires for continued personal growth and development.

Business Growth

The process of improving some measure of an enterprise's success, which can be achieved through increased revenue, profits, market share, or expansion.

Punitive Damages

Monetary compensation awarded to an injured party that exceeds simple compensation and is intended to punish the defendant.