The Accounting Manager of Gateway Inns Has Noted That Every

question 2

Multiple Choice

The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 2 percent,the operating cash flow increases by 5.3 percent.What is the degree of operating leverage if the contribution margin per unit is $47?

• A)0.38
• B)0.57
• C)1.75
• D)2.10
• E)2.65

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Definitions:

Inadvertently Sells

The act of selling something accidentally or without the intention of doing so.

Special Property Interest

A legal right or claim to real estate or property that grants certain uses or privileges to the holder beyond simple ownership.

Trial Sale

A temporary, conditional sale of a product to a customer, allowing the customer to test and evaluate the product before making a final purchase decision.

Transfer of Title

The process of legally changing ownership of a property from one entity or person to another.