A 10% Increase in Sales Causes EPS to Rise from $0.50

question 110

Multiple Choice

A 10% increase in sales causes EPS to rise from $0.50 to $0.56.Assuming the firm has no debt,what is its degree of operating leverage (DOL) ?

• A) 1.00
• B) 1.20
• C) 0.83
• D) 1.50
• E) 0.75

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Definitions:

Manual Dexterity

The skillful use of the hands and fingers to perform tasks with precision, often important in various professions and daily activities.

Gross Motor Development

The progression of physical abilities involving large muscle movements such as walking, jumping, and throwing, typically observed in early childhood development.

Motor Milestones

Specific physical skills or movements that most children achieve by a certain age, indicating developmental progress.

Novice Walker

A Novice Walker is an individual, typically a baby or toddler, who is in the early stages of learning to walk, mastering balance and coordination.