What Formula Is Used to Calculate the Degree of Operating

question 154

Multiple Choice

What formula is used to calculate the degree of operating leverage?

• A) total sales / profit
• B) profit / fixed costs
• C) profit / variable costs
• D) contribution margin / profit

---

Definitions:

Nerve Fibers

Long projections of nerve cells that transmit electrical impulses throughout the body.

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in decision making, problem-solving, and controlling social behavior.

Motor Cortex

A region of the cerebral cortex involved in planning, controlling, and executing voluntary movements.

Primary Visual Cortex

The part of the cerebral cortex that receives and processes visual information from the eyes, located in the occipital lobe.