If a Company Has a Degree of Operating Leverage of 5

question 136

Multiple Choice

If a company has a degree of operating leverage of 5 and sales increase by 30%, then ________.

• A) total fixed costs will increase by 150%
• B) total costs will increase by 150%
• C) profit will increase by 120%
• D) profit will increase by 150%

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Definitions:

C

It's a broadly usable procedural programming language that facilitates structured coding practices, manages variable scopes lexically, and permits recursive operations.

Standard Output

The default data stream for output generated by a program, typically the computer screen.

C++

A general-purpose programming language created as an extension of the C programming language, supporting object-oriented, procedural, and generic programming.

Cin

A standard input stream in C++, used for reading input from standard input (typically the keyboard).