The Degree of Operating Leverage Can Be Calculated As

question 33

Multiple Choice

The degree of operating leverage can be calculated as:

• A) contribution margin divided by sales.
• B) gross margin divided by net income.
• C) net income divided by sales.
• D) contribution margin divided by net income.

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Definitions:

Framing

The way in which information is presented to influence perceptions, decisions, and judgments; often used in contexts of communication and psychology.

Nudge

A framing of choices by which governments and companies can, without coercion or altered incentives, encourage people to make choices that support their health, retirement savings, and well-being.

Choices

The act of selecting between two or more possibilities when faced with a decision.

Belief Perseverance

The phenomenon wherein individuals maintain their beliefs even in the face of contradictory evidence.