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The Degree of Operating Leverage Is Computed by Dividing Sales

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The degree of operating leverage is computed by dividing sales by the contribution margin.


Definitions:

Confidence Interval

A series of values, calculated from sample measurements, speculated to hold within it the unknown parameter of a population.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.

Sample Mode

The value that appears most frequently in a given set of data from a sample.

Hypotheses

Proposed explanations made on the basis of limited evidence as a starting point for further investigation.

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