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:

Resource Mobilization Theory

A theory in social movements positing that the success of social movements depends on resources (time, money, skills) and the ability to use them.

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Individuals who actively promote, impede, or direct social, political, economic, or environmental reform or stasis with the desire to make improvements in society.