Which of the following statements is true?
a. When the Margin of Safety (MS) is low, the Degree of Operating Leverage (DOL)is high.
b. As sales increase from the break-even point, MS increases but the DOL decreases.
c. The relationship between the MS percentage and the DOL is: MS% = 1/DOL
d. All of the above statements are true.
d
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When Apple introduced its iPhone, it was priced at $599. This allowed Apple to earn the maximum amount of revenue from the various segments of the market. Two months after the introduction, the price has come down to $399
What kind of a pricing did Apple adopt? A) loss-leader pricing B) market-penetration pricing C) market-skimming pricing D) target-return pricing E) value pricing
Distinguish between inherent risk and control risk. How do internal controls and detection risk fit in?
You are interested in the effect of increased carbon dioxide versus normal air on the growth of corn plants as well as the effect of green light versus full sunlight on the growth of corn plants. Your plan is to set up your experiment inside a greenhouse where you can control the environment. Which of the following is an aspect of the experiment that should be considered and controlled?
A. All seedlings come from one uniform strain. B. All temperatures and available water remain the same for all plants. C. An increase in carbon dioxide should not result in a substantial decrease of other necessary gases. D. The intensity or brightness of the green light equals the intensity of the full sunlight. E. All of the choices are important considerations.
The understanding that people are more likely to carry out decisions they helped to make is based on the research of ____________.
A) Kurt Lewin B) Douglas McGregor C) Frederick Taylor D) Chester Barnard