Which of the Following Equations Can Be Used to Compute

question 141

Multiple Choice

Which of the following equations can be used to compute a firm's magnitude of operating leverage?

• A) Net income ÷ Sales
• B) Fixed costs ÷ Contribution margin
• C) Contribution margin ÷ Net income
• D) Net income ÷ Contribution margin

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Definitions:

CPM

Critical Path Method, a project management tool used to schedule, organize, and coordinate tasks within a project. It identifies the longest stretch of dependent tasks and measures the time required to complete them from start to finish.

Activity Durations

The length of time taken to complete specific activities within a project or process, crucial for project planning and scheduling.

Project Management Phases

The stages through which a project progresses, typically including initiation, planning, execution, monitoring and controlling, and closing.

Planning

The process of outlining business goals, defining strategies for achieving those goals, and developing plans to integrate and coordinate activities.