The Accounting Manager of Gateway Inns Has Noted That Every

question 93

Multiple Choice

The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 3.3 percent, the operating cash flow increases by 4.6 percent. What is the degree of operating leverage if the contribution margin per unit is $47?

• A) .72
• B) .85
• C) 1.75
• D) 1.18
• E) 1.39

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Definitions:

Nervous System

The complex network of nerves and cells that transmits signals between different parts of the body, enabling sensory perception, coordination, and response to stimuli.

Annelids

A phylum of segmented worms that includes earthworms, leeches, and polychaetes, characterized by a segmented body structure.

Flatworms

A group of invertebrates within the phylum Platyhelminthes, known for their flat, soft bodies.

Water-Vascular System

Of echinoderms, a system of fluid-filled tubes and tube feet that function in locomotion.