Multiple Choice
For a firm with a DOL of 3.5, an increase in sales of 6 percent will:
A) Increase pretax profits by 3.5 percent
B) Decrease pretax profits by 3.5 percent
C) Increase pretax profits by 21.0 percent
D) Increase pretax profits by 1.71 percent
Correct Answer:
Verified
Correct Answer:
Verified
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