The Degree of Operating Leverage Is Calculated as

question 97

Multiple Choice

The degree of operating leverage is calculated as

• A)Net operating income divided by contribution margin.
• B)Contribution margin divided by sales.
• C)Net operating income divided by sales.
• D)Contribution margin divided by net operating income.

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Definitions:

Reset

The act of bringing a device, component, or system back to its original state or setting, often to correct a malfunction or restart a process.

Protons

Subatomic particles found in the nucleus of an atom, characterized by a positive electric charge and a significant role in determining the chemical properties of elements.

Atom

The smallest unit of a chemical element, consisting of a nucleus surrounded by electrons.

Electricity

The flow of electrons from a source of higher electrical potential to a source of lower electrical potential through a conductor.