At a Base Sales Level of $400,000, a Firm Has

question 135

Multiple Choice

At a base sales level of $400,000, a firm has a degree of operating leverage of 2 and a degree of financial leverage of 1.5. The firm's degree of total leverage is ________.

• A) 3.5
• B) 3.0
• C) 0.5
• D) 1.3

---

Definitions:

Interpersonal Issues

Problems or conflicts that arise in the course of interactions between individuals, often due to miscommunication, differences in values, or personality clashes.

Personal Comfort

The state of physical and psychological ease or well-being experienced by an individual, often influenced by environmental factors or personal preferences.

Power Distribution

The way authority, control, and decision-making are spread across an organization or society.

Social Loafing

The phenomenon where individuals in a group or team exert less effort towards achieving a goal than when they work alone.