Degree of Operating Leverage Is Calculated As

question 26

Multiple Choice

Degree of operating leverage is calculated as:

• A)profit divided by contribution margin.
• B)break-even sales divided by profit.
• C)profit divided by break-even sales.
• D)contribution margin divided by profit.

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Definitions:

Antitrust Amendments

Modifications made to laws that regulate competition among businesses, intended to prevent monopolies and promote fair competition.

Retailer

A business or person that sells goods directly to consumers, acting as the final link in the distribution chain from manufacturers to end users.

Robinson-Patman Act

A federal law in the United States that bans practices by producers that hinder competition, particularly discriminating in pricing.

Functional Discount

A price reduction offered to channel members who perform certain functions such as selling, storing, and record-keeping.