To Find a Firm's Operating Leverage Factor at a Given

question 105

Multiple Choice

To find a firm's operating leverage factor at a given level of sales,you:

• A)divide the contribution margin by fixed expenses.
• B)divide variable expenses by fixed expenses.
• C)divide the contribution margin by operating income.
• D)relatively operating income by contribution margin.

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Definitions:

Full Term

In obstetrics, a pregnancy period considered complete and normal, typically ranging from 37 to 41 weeks.

Miscarriage

A spontaneous loss of a pregnancy before the 20th week.

Pregnancy Loss

The loss of a pregnancy before the baby is born, which can include miscarriage or stillbirth, often leading to emotional and psychological distress.

Annually

Referring to something that occurs once every year.