The Degree of Operating Leverage Can Be Calculated As

question 178

Multiple Choice

The degree of operating leverage can be calculated as:

• A)contribution margin divided by sales.
• B)gross margin divided by net operating income.
• C)net operating income divided by sales.
• D)contribution margin divided by net operating income.

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Definitions:

Nash Equilibrium

A concept in game theory where no participant can gain by unilaterally changing their strategy, assuming other participants' strategies remain unchanged.

Advertising

The act of promoting products, services, or brands through various media channels to influence consumer behavior or perception.

Revenues

The total income generated by a firm or organization from its activities, before any expenses are subtracted.

Utility Function

A mathematical representation of how consumer preferences over a set of goods and services are ordered.