Friday, July 8, 2011

Witczak Company has a single product and currently has a degree of operating leverage of 5

ECONOMICS

Multiple Choice

Witczak Company has a single product and currently has a degree of operating leverage of 5. Which of the following will increase Witczak's degree of operating leverage?

An increase in
variable expenses

A)Yes
B) No
C) Yes
D) No

An increase in
fixed expenses

Yes
Yes
No
No

A. Choice A

B. Choice B

C. Choice C

D. Choice D

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