If a Company Has a Degree of Operating Leverage of 4.0

question 39

True/False

If a company has a degree of operating leverage of 4.0, that means a 10% increase in sales will result in a 40% increase in operating income.

---

Definitions:

Flukes

Unpredictable events of chance or luck, especially those leading to a favorable outcome.

Dependent Variable

In an experiment, it is the variable being tested and measured, and it is expected to change as a result of manipulations to the independent variable(s).

Interpersonal Skills

The abilities used by a person to interact effectively with others, such as communication, empathy, and conflict resolution.

Sleep Deprivation

Sleep deprivation is a condition resulting from not getting enough sleep, which can affect mood, performance, and overall health.