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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