The Degree of Operating Leverage Can Be Calculated As

question 41

Multiple Choice

The degree of operating leverage can be calculated as:

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

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Definitions:

Ongoing Practices

Activities or processes that are continuously conducted or repeated over time, forming a regular pattern or routine.

Organizational Life

Aspects and dynamics of existence within organizations, including culture, structures, processes, and interactions among members.

Purist Approach

A methodology or philosophy characterized by a strict adherence to traditional methods or structures, particularly in cultural or artistic practices.

Organizational Culture

The collective behaviors, values, beliefs, and assumptions that contribute to the unique social and psychological environment of an organization.