The Degree of Operating Leverage Is Computed as

question 4

Multiple Choice

The degree of operating leverage is computed as

• A) percent change in operating profit divided by percent change in net income.
• B) percent change in volume divided by percent change in operating profit.
• C) percent change in EPS divided by percent change in operating income.
• D) percent change in operating income divided by percent change in volume.

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Definitions:

Observable Behavior

Actions or responses of an individual that can be seen and measured directly by others.

Inner Thoughts

The internal, often unspoken, dialogue and contemplations of an individual.

Edward Titchener

A psychologist known for developing the theory of structuralism and promoting the use of introspection in psychological research.

Mental Processes

The internal cognitive activities of the mind, including thinking, memory, decision-making, and perception.