KO Marketing Company, a U. S. firm, signs a contract with Librador Corporacion, a Chilean firm, to give Librador the right to use Innovative’s animation techniques and characters in product promotions. This is .A) a distribution agreement.
B) a joint venture.
C) direct exporting.
D) licensing.

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?