How Is the Degree of Operating Leverage Calculated

question 31

Multiple Choice

How is the degree of operating leverage calculated?

• A) Contribution margin divided by sales.
• B) Gross margin divided by operating income.
• C) Operating income divided by sales.
• D) Contribution margin divided by operating income.

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Definitions:

Legally Mandated

Legally mandated refers to actions or processes required by law, often enforced by a governing body or legal jurisdiction.

Appropriateness of Services

The degree to which services provided to a client are suitable and relevant to their unique needs and circumstances.

Formal Agreement

A legally binding contract or arrangement that specifies the duties and rights of the parties involved.

Strategies Implemented

refers to the application or execution of a plan or method aimed at achieving specific goals or outcomes.