The degree of operating leverage can be measured by ________.
A) dividing the contribution margin by operating income
B) dividing the fixed costs by the sales price per unit
C) multiplying the contribution margin to sales revenue
D) dividing the fixed costs by contribution margin

Question

Quizplus · Accepted Answer

The degree of operating leverage is calculated by dividing the contribution margin by operating income. This measures how a change in sales will affect operating income due to fixed costs.

The Degree of Operating Leverage Can Be Measured by ________