Mussubsound Audotec Inc

question 19

Multiple Choice

Mussubsound Audotec Inc. had EBIT of $1,850 last year with fixed costs equal to $500 (depreciation and amortization not included) and depreciation and amortization equal to $150. What was Mussubsound Audotec's degree of accounting operating leverage?

• A) 1.25
• B) 1.35
• C) 1.38
• D) 1.40

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Definitions:

Antidepressant Drugs

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Mood Elevators

Substances, often medications, that can improve emotional state and combat depression.

Atypical Neuroleptics

A newer class of antipsychotic drugs that tend to cause fewer traditional side effects of older antipsychotics, often used in schizophrenia treatment.

Serotonin

A neurotransmitter in the brain that plays a key role in stabilizing mood, feelings of well-being, and happiness.