Which of the Following Measures the Percentage Change in Profits

question 59

Multiple Choice

Which of the following measures the percentage change in profits resulting from a percentage change in sales?

• A)variable cost leverage
• B)contribution margin ratio
• C)degree of operating leverage
• D)sales margin ratio

---

Definitions:

Breakfast Cereals

Manufactured food products made from processed grains that are often eaten as the first meal of the day.

Recession

A short-term downturn in the economy characterized by decreased trade and industrial production, typically marked by a decline in gross domestic product (GDP) for two consecutive quarters.

Employment

Employment refers to the condition of having paid work or the relationship between an employer and an employee who performs work or services for compensation.

Income Decrease

Income Decrease refers to a reduction in the amount of money received by an individual or entity, often affecting purchasing power and economic stability.