If Sales Increase from $80,000 Per Year to $120,000 Per

question 110

Multiple Choice

If sales increase from $80,000 per year to $120,000 per year,and if the degree of operating leverage is 5,then by what percentage should operating income increase?

• A) 167%.
• B) 250%.
• C) 100%.
• D) 334%.

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Definitions:

Buccinator

A muscle of the cheek that acts to compress the cheek against the teeth and is used in blowing and chewing.

Carpal Tunnel Pressure

The pressure within the carpal tunnel, an anatomical compartment of the hand, potentially leading to carpal tunnel syndrome when increased.

Palmar Aponeurosis

A thick fibrous tissue layer in the palm of the hand that anchors the skin and helps in gripping.

Extensor Retinaculum

A fibrous band that binds the tendons of the extensor muscles of the wrist and ankle, preventing them from bowing during muscle contraction.