Operating Leverage ____ as the Volatility of Operating Earnings ____

question 36

Multiple Choice

Operating leverage ____ as the volatility of operating earnings ____.

• A) increases, increases
• B) decreases, increases
• C) increases, decreases
• D) remains the same, increases

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Definitions:

Decimal Place

The position of a number to the right of the decimal point, indicating its fractional part, used to measure precision.

Aloud

To say something in a voice that can be clearly heard; not silently or in a whisper.

Exponent

A mathematical notation indicating the number of times a number is multiplied by itself.

Square

A geometric figure with four equal sides and four right angles, or the mathematical operation of multiplying a number by itself.