If a company has a degree of operating leverage of 5 and sales increase by 30%, then ________.
A) total fixed costs will increase by 150%
B) total costs will increase by 150%
C) profit will increase by 120%
D) profit will increase by 150%

Name: If a company has a degree of operating leverage of 5 and sales increase by 30%, then ________. A) total fixed costs will increase by 150% B) total costs will increase by 150% C) profit will increase by 120% D) profit will increase by 150%
Brand: Quizplus
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Question

Quizplus · Accepted Answer

5 × 30% = 150%

If a Company Has a Degree of Operating Leverage of 5