Degree of Operating Leverage Is Calculated by Dividing Sales by Profit.Degree

question 69

True/False

Degree of operating leverage is calculated by dividing sales by profit.Degree of operating leverage is calculated by dividing contribution margin by profit.

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Definitions:

UPA

Uniform Partnership Act, which governs the operation of partnerships within the United States.

Legal Entity

A legal entity is any company or organization that has legal rights and responsibilities, including the ability to enter into contracts, sue, and be sued.

Unlimited Liability

A legal obligation where an individual's responsibility for debts extends beyond what was invested into a business, potentially affecting personal assets.

Entire Estate

All the assets, properties, and interests owned by an individual at the time of their death.