Which of the Following Calculations Can Be Used to Measure

question 89

Multiple Choice

Which of the following calculations can be used to measure a company's degree of operating leverage?

• A) Contribution margin / sales.
• B) Contribution margin / income.
• C) Sales / contribution margin.
• D) Sales /income.
• E) Sales / fixed costs.

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Definitions:

Branch Banking

Banking operations in which a financial institution operates multiple branches, each providing banking services to customers.

Interest Rate Changes

Variations in the cost of borrowing money, often influenced by central banking policy to control inflation and economic growth.

Demand For Money

This represents the inverse relationship between the level of money balances and the price of holding money balances.

Barter Economy

An economic system in which goods or services are traded directly for other goods or services without using a medium of exchange, such as money.