Degree of Operating Leverage (DOL) Is Defined as Total Contribution

question 96

True/False

Degree of operating leverage (DOL) is defined as total contribution margin in dollars divided by pretax income.

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Definitions:

Nearby Object

An item or entity that is located within a short distance from a point of reference, often within easy reach or view.

Gestalt Principle

A theory in psychology that proposes the human brain sees objects in their entirety before perceiving their individual parts.

Similarity

The state of being alike or sharing common features.

Costumes

Outfits worn to create a particular appearance, often used in theatrical performances, celebrations, or as part of role-playing.