The Degree of Operating Leverage (DOL), at a Given Sales

question 57

Multiple Choice

The degree of operating leverage (DOL) , at a given sales volume, is equal to:

• A) (Operating profit − fixed expenses)/sales.
• B) (Sales − variable expenses)/operating profit.
• C) Operating profit/(fixed expenses − variable expenses).
• D) Sales/(fixed expenses A − operating profit).
• E) Fixed costs/Total contribution margin.

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Definitions:

Satisfied

The feeling of contentment or fulfillment that comes from meeting one's expectations or needs.

Committed

Being dedicated or bound to a cause, activity, or person, showing loyalty and perseverance.

Relationship

A connection, association, or involvement between people, which can be emotional, social, or professional.

Dismissive Avoidant

An avoidant attachment style characterized by a negative view of others but a positive view of the self, high anxiety and avoidance, and distant relationships.