Degree of Operating Leverage Is

question 21

Multiple Choice

Degree of operating leverage is:

• A) The contribution margin divided by profit
• B) The ratio of total variable costs to total revenues
• C) The volume of revenue needed to breakeven
• D) Only important when the organization is very profitable

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Definitions:

Variable Ratio Schedule

A variable ratio schedule in reinforcement theory involves rewarding a behavior after an unpredictable number of responses, promoting a high and steady response rate.

Fixed Interval Schedule

A reinforcement schedule in operant conditioning where rewards are given at fixed intervals of time, provided the correct response is made.

Nonreinforced Responses

Reactions or actions that are not followed by reinforcement, thus not likely to be strengthened or learned.

Variable Interval Schedule

A reinforcement schedule in which a response is rewarded after an unpredictable amount of time has passed.