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:

Consumer Reactions

The responses or behaviors of consumers towards products, services, or marketing strategies.

Ground Beef

Meat that has been finely chopped by a meat grinder or a chopping knife, typically made from beef, but can be from other meats.

Framing

The way an issue is posed; how an issue is worded can significantly affect decisions and judgments.

Winter Coat

A piece of outerwear designed to keep the body warm during cold weather conditions.