Frontier Corp Has a Contribution Margin of $450,000 and Profit

question 78

Multiple Choice

Frontier Corp has a contribution margin of $450,000 and profit of $150,000.What is its degree of operating leverage?

• A).33
• B)1.67
• C)2.5
• D)3

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Definitions:

Stepwise Procedure

A method of adding or removing variables incrementally in regression analysis based on certain criteria, such as the statistical significance of the variables.

Dependent Variable

The variable in a study or experiment that is affected by changes in another variable and is measured or observed.

Significant Contribution

A meaningful impact or improvement made by an action, study, or individual that notably advances a field or solves a problem.

Sum of Squares

A statistical technique used to quantify the variation within a data set by summing the squared deviations of each data point from the mean.