As a Result of a Company's 15% Increase in Sales

question 26

Multiple Choice

As a result of a company's 15% increase in sales their EBIT increased by 25%.What is the company's operating leverage?

• A) 2.33
• B) 1.67
• C) 1.50
• D) 3.33

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Definitions:

Contracted Party

An entity or individual that has legally agreed to terms and conditions set forth in a contract with another party.

Ethical Dilemma

A situation in which a difficult choice has to be made between two or more morally correct actions that are in conflict.

Moral Principles

Fundamental beliefs about right and wrong that guide an individual's behavior and decision-making.

Ethical Behavior

Conduct that is consistent with what society, and individuals typically think are good values, often involving honesty, fairness, and integrity.