The Degree of Operating Leverage Is Equal To

question 13

Multiple Choice

The degree of operating leverage is equal to:

• A)the percentage change in quantity divided by the percentage change in OCF.
• B)the percentage change in sales divided by the percentage change in OCF.
• C)1 + FC/OCF.
• D)1 + VC/OCF.
• E)1 - (FC + VC)/OCF.

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Definitions:

Confusion

A state of being bewildered or unclear in one’s mind about something.

Endorphins

Natural, pain-relieving chemicals produced by the body during exercise, excitement, pain, and sexual activity, contributing to a sense of well-being.

Morphine

A powerful opiate analgesic drug derived from the opium poppy, used to relieve severe pain.

Neurotransmitter Molecules

Chemical substances in the nervous system that transmit signals across a chemical synapse from one neuron to another neuron, muscle cell, or gland cell.