The Higher the Operating Leverage Factor,the

question 96

Multiple Choice

The higher the operating leverage factor,the

• A)greater the impact of volume on operating income.
• B)lesser the impact of volume on operating income.
• C)more likely operating income is to stay constant.
• D)greater the chance that none of the above occur.

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Definitions:

Decreases

A reduction in quantity, size, value, or extent of a specific economic variable or commodity.

Expected Price Level

The anticipated average price across all goods and services in an economy over a future period.

Aggregate Demand

Unified request for the provision of goods and services in an economy, calculated at a specific scale of overall price for a given duration.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to sell at a given price level in a specific time period.