Tribley Inc

question 5

Multiple Choice

Tribley Inc. has an operating leverage of 8.0. If the company's sales increase by 19%, its net operating income should increase by about:

• A)152.0%
• B)19.0%
• C)8.0%
• D)42.1%

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Definitions:

Resources

Assets or inputs available for use in the production of goods or services, including natural, human, and capital resources.

Scarce

Describes a condition where resources, goods, or capabilities are limited in availability relative to the demand for them.

Wants

Desires for goods, services, or experiences that are not essential for survival but are deemed desirable based on individual preferences.

Comparative Advantage

The ability of a country or individual to produce a particular good or service at a lower opportunity cost than another.