The degree of operating leverage may be defined as
A) the percent change in operating income divided by the percent change in unit volume.
B) Q (P-VC) divided by Q (P-VC) - FC.
C) S - TVC divided by S - TVC - FC.
D) all of the other answers are correct

Question

Quizplus · Accepted Answer

The degree of operating leverage can be expressed in multiple ways, including the percent change in operating income divided by the percent change in unit volume, and the formulas Q (P-VC) / (Q (P-VC) - FC) and S - TVC / (S - TVC - FC), where Q is quantity, P is price, VC is variable cost, FC is fixed cost, S is sales, and TVC is total variable cost.

The Degree of Operating Leverage May Be Defined as