When Quineboag Textile's sales revenue increased from $5.0 million to $5.25 million, net operation income increased from $500,000 to $575,000. What is Quineboag's degree of operating leverage (DOL)?

A) .015
B) .33
C) 3.00
D) 10


Answer: C

Business

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If Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora:

a. Bob is under no obligation to return the money. b. Bob is under a contractual obligation to return the money. c. Bob's obligation to return the money is quasi-contractual. d. Bob's obligation to return the money is implied in fact.

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Holding costs can be expressed as ______.

a. the total carrying cost per unit per time period b. the sum of setup costs and ordering costs c. a hidden cost d. proportional to manufacturing costs

Business

Dr. Hogan carefully chose the final exams written by her best students to read first. They all received excellent grades. After these, she read the rest of the exams and graded most of them average or worse. This is an example of ________ perceptual error.

A. contrast effects B. leniency C. halo D. recency E. central tendency

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Sensitivity analysis shows how the distribution of possible net present values is affected by a change in one input variable

Indicate whether this statement is true or false.

Business