If Q Equals the Level of Output, P Is the Selling

question 136

Multiple Choice

If Q equals the level of output, P is the selling price per unit, V is the variable expense per unit, and F is the fixed expense, then the degree of operating leverage is equal to:

• A)Q/(P-V).
• B)F/(P-V).
• C)F/[(P-V)/P].
• D)[(P-V)Q]/[(P-V)Q-F].

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Definitions:

Hierarchy

Hierarchy is a system in which members of an organization or society are ranked according to relative status or authority.

Consistency

The quality of maintaining uniformity, coherence, and reliability in actions, processes, or results over time.

Editing

The process of reviewing, correcting, and preparing written or multimedia material for publication or presentation.

Conventional System

A traditional or widely accepted method, tool, or approach used for a specific purpose or activity.