Operating leverage is best described as:
A) A measure of the extent to which an organization's costs are fixed
B) A measure of the extent to which an organization's contribution margin is sensitive to levels of debt
C) A measure of the extent to which an organization's operations are financed by debt
D) A measure of the extent to which an organization's profits contribute to reductions in debt
Correct Answer:
Verified
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A) The portion of
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Q34: Operating leverage is computed as:
A) Contribution margin
Q35: All else being equal, this is true
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