The April Contribution Format Income Statement of Iannacone Corporation Appears

question 90

Multiple Choice

The April contribution format income statement of Iannacone Corporation appears below:
-The degree of operating leverage is closest to:

• A) 11.28
• B) 0.29
• C) 3.50
• D) 0.09

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Definitions:

Inelastic

A description of a product or service's demand when consumers' demand is relatively insensitive to price changes.

Price Elasticity of Demand Coefficient

A metric that determines how the demand for a product reacts to adjustments in its price.

Midpoint Formula

A mathematical method used to calculate the average or midpoint of two points on a line, often used in economics to find the elasticity of demand.