If a Company Would Like to Increase Its Degree of Operating

question 197

Multiple Choice

If a company would like to increase its degree of operating leverage it should:

• A)increase its inventories relative to its receivables
• B)increase its receivables relative to its inventories
• C)increase its variable costs relative to its fixed costs
• D)increase its fixed costs relative to its variable costs

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Definitions:

Dinoflagellates

A group of single-celled organisms found in marine and freshwater environments known for their role in aquatic food chains and some can cause red tides.

Genetically Distinct Cells

Cells that have a unique genetic makeup, distinguishing them from other cells within an organism or between organisms.

Genetically Identical Cells

Cells that have exactly the same DNA sequence, typically arising from the division of a single cell or from cloning processes.

Intracellular Shells

Membrane-bound organelles within a cell that compartmentalize cellular processes and substances.