The Degree of Operating Leverage Is Calculated as the Contribution

question 20

True/False

The degree of operating leverage is calculated as the contribution margin divided by the sales revenue.

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Definitions:

Factor

A number or algebraic expression that divides another number or expression evenly, with no remainder.

Trinomial

A polynomial consisting of three terms or monomials, often in the form ax^2 + bx + c.

Expression

An arrangement of numbers, symbols, and operators designed to represent a specific mathematical quantity or concept.

Factor

A number or expression that divides into another number or expression exactly, without leaving a remainder.