The _____ Can Be Measured for a Given Level of Sales

question 36

Multiple Choice

The _____ can be measured for a given level of sales by taking the ratio of contribution margin to operating income.

• A) percentage change in profits
• B) degree of operating leverage
• C) indifference point
• D) margin of safety
• E) unit contribution margin

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Definitions:

Remedy

Legal means or measures available to a party to enforce a right or redress a harm.

Misrepresentation

The act of providing false or misleading information about a material fact, intentionally or negligently, causing someone to enter into a contract.

Affirmed

Officially confirmed or validated.

Rescission

The legal process of canceling, terminating, or reversing a contract, returning all parties to their positions prior to the agreement.