If a Company Has a Degree of Operating Leverage of 2.0,that

question 133

True/False

If a company has a degree of operating leverage of 2.0,that means a 20% increase in sales will result in a 40% increase in variable costs.

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Definitions:

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, often including preventive services, treatments, and surgeries.

Medical Insurance

Health coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Health Risks

Potential factors or behaviors that can lead to disease, injury, or other health problems.

Moral Hazard

A situation where one party engages in risky behavior knowing that it is protected against the risk because another party will incur the cost.