If a Company Would Like to Increase Its Degree of Operating

question 119

Multiple Choice

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

• A) increase its sales relative to its fixed costs
• B) increase its sales relative to its variable costs
• 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:

Deliverable State

A condition referring to the readiness or suitability of a product or property to be handed over or delivered as per an agreement.

Standard-Sized Cupboards

Standard-sized cupboards refer to storage units with dimensions that adhere to commonly accepted measurements for such furniture, facilitating compatibility and uniformity in spaces.

Lien

A claim registered against property, such as a mortgage; a charge giving the creditor the right to retain what is in her possession until her demands for payment are satisfied.

Specific Performance

An order by a court to a breaching party that it live up to the terms of an agreement.