A Very High Degree of Operating Leverage Indicates a Firm

question 5

Multiple Choice

A very high degree of operating leverage indicates a firm

• A)has high fixed costs.
• B)has a high net income.
• C)has high variable costs.
• D)is operating close to its break-even point.

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Definitions:

Southern Strategy

A political strategy aimed at gaining support in the southern United States, often associated with appealing to racial sentiments.

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The 37th President of the United States, known for his involvement in the Watergate scandal and his policy of détente with the Soviet Union.

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A group of nuclei in the brain involved in movement control and decision-making processes.