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.