To Find a Firm's Operating Leverage Factor at a Given

question 230

Multiple Choice

To find a firm's operating leverage factor at a given level of sales,you

• A)divide the contribution margin by fixed expenses.
• B)divide the contribution margin by operating income.
• C)divide variable expenses by fixed expenses.
• D)divide relatively operating income by contribution margin.

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Definitions:

Classic Buick

Refers to a vintage or highly valued model of Buick, a prominent automobile brand known for its luxury vehicles.

Specified Amount

An exact or particular sum of money designated in a contract or agreement that is agreed upon by all parties involved.

Status Indians

Individuals recognized by the Canadian government as being registered under the Indian Act, granting them certain rights and benefits.

Contractual Obligations

Duties that one or more parties are legally bound to perform under the terms of a contract.