Which of the Following Statements Is Most Likely True If

question 66

Multiple Choice

Which of the following statements is most likely true if Red Inc. has an operating leverage of 2.0 while Blue Corp. has an operating leverage of 1.4?

• A) Red Inc. is selling its products for a higher sales price than Blue Corp.
• B) Red Inc.'s net operating income will be less sensitive to a change in sale volume than Blue Corp.
• C) Blue Corp.'s fixed costs in relation to variable costs are lower than Red Inc.'s.
• D) Blue Corp. has a lower contribution margin per unit than Red Inc.

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Definitions:

Delinquent Behavior

Actions that violate the norms of society or the laws of the land, often associated with juveniles.

Identity Achievement

An identity status that characterizes those who have explored alternatives and have developed commitments.

James Marcia

A psychologist known for his work on adolescent identity formation and his development of identity status theory.

Identity Statuses

Different stages of identity development proposed by James Marcia, including achievement, moratorium, foreclosure, and diffusion.