The Degree of Operating Leverage Is Computed as

question 77

Multiple Choice

The degree of operating leverage is computed as

• A) percent change in operating profit divided by percent change in net income.
• B) percent change in unit volume divided by percent change in operating profit.
• C) percent change in EPS divided by percent change in operating income.
• D) percent change in operating income divided by percent change in unit volume.

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Definitions:

Jejunum

The middle section of the small intestine in mammals, between the duodenum and ileum, where the absorption of nutrients and minerals occurs.

Duodenum

The first section of the small intestine, immediately following the stomach, where significant chemical digestion occurs.

Fundus

The upper part of a hollow organ, like the stomach or uterus, which is often opposite from the opening.

Cardia

The section of the stomach where the esophagus leads into it, involved in controlling the passage of food and preventing acid reflux.