Charles River Publishing's Degree of Operating Leverage Is

question 21

Multiple Choice

Charles River Publishing's degree of operating leverage is .5. To increase net operating income from $3,750,000 to $3,937,500, it will need to increase sales from $25,000,000 to

• A) $37,500,000
• B) $27,500,000
• C) $25,093,750
• D) $26,250,000

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Definitions:

Demand-Pull Inflation

A situation where prices rise because the demand for goods and services exceeds their supply in the economy.

Aggregate Demand

The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.

Aggregate Supply

The total supply of goods and services available to an economy from producers at a given overall price level and at a given time period.

Hyperinflation

An extremely high and typically accelerating inflation rate, causing a rapid erosion of currency's value.