Gentech,Inc

question 97

Multiple Choice

Gentech,Inc.is an integrated circuit (microchip) manufacturer based out of New Jersey.Its principal products include microprocessors and motherboard chipsets.Selected financial statement values for Gentech are shown in the table,below.What is the degree of operating leverage for Gentech given the change in revenues from Year 1 to Year 2?

• A) 0.13
• B) 1.17
• C) 1.00
• D) 1.24
• E) 0.75

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Definitions:

Plants

Multicellular organisms in the kingdom Plantae that typically produce their own food through photosynthesis and have cell walls made of cellulose.

Fish

Aquatic, gill-bearing organisms that lack limbs with digits, comprising a large and diverse group of vertebrates inhabiting both fresh and saltwater environments.

Birds

Warm-blooded, feathered vertebrates that lay eggs and have wings, belonging to the class Aves.

Threatened Species

A species in which the population is small enough for it to be at risk of becoming extinct throughout all or part of its range but not so small that it is in imminent danger of extinction. Compare with endangered species.