A Company with a Degree of Operating Leverage of 4

question 132

True/False

A company with a degree of operating leverage of 4 would expect income to increase by 200% if sales increased from $100,000 to $150,000.
Increase in Sales is 50% so income increases 50%*4.

---

Definitions:

Surface Acting

A behavioral concept where individuals fake or modify their external expressions or emotions to meet certain expectations.

Deep Acting

An emotional labor strategy where individuals attempt to feel the emotions they are supposed to display, rather than just superficially acting them out.

Internal Emotion

A personal and subjective experience of feeling, which originates inside an individual and can influence their thoughts and behavior.

Fear

A primal emotion experienced in anticipation of some specific pain or danger, often leading to behavioral changes such as fight or flight.