A Company with a Degree of Operating Leverage of 4

question 143

True/False

A company with a degree of operating leverage of 4 would expect net operating income to increase by 200% if sales increased from $100,000 to $150,000.

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Definitions:

Single-Tax Movement

A political and economic ideology that proposes a single tax, typically on land, to replace all other taxes.

Land Rent

Payment made to the owner of land for the right to use the land, distinct from payments made for buildings or other improvements.

Henry George

A 19th-century economist known for his advocacy of a single tax on land value to improve social equity.

Land Rent

The payment made for the use of land, typically based on its value and location.