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

question 221

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:

Means-Tested

A process by which individuals' or families' income and assets are analyzed to determine eligibility for certain types of government assistance or services.

Public Assistance

Government programs designed to provide financial aid, services, or support to individuals or families in need, including welfare, food stamps, and unemployment benefits.

Americans

Citizens or natives of the United States of America, encompassing a wide range of cultural, ethnic, and racial backgrounds.

Unemployment Rate

The proportion of the workforce that is unemployed and actively looking for work.