Forde Co Has an Operating Leverage of 4

question 24

Multiple Choice

Forde Co. has an operating leverage of 4. Sales are expected to increase by 12% next year. Operating income is

• A) unaffected
• B) expected to increase by 3%
• C) expected to increase by 48%
• D) expected to increase by 4%

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Definitions:

Cephalocaudal Development

A pattern of growth where development proceeds from the head downwards towards the rest of the body.

Miscarriage

The spontaneous loss of pregnancy before the fetus can survive outside the womb, typically occurring within the first 20 weeks of gestation.

Testosterone

A steroid hormone primarily produced in men's testes and women's ovaries, significant for regulating sex drive, bone mass, fat distribution, muscle mass, and strength.

Wolffian System

A part of the embryonic male reproductive system that develops into the epididymis, vas deferens, and seminal vesicles in males.