Operating leverage is best described as:
A) A measure of the extent to which an organization's costs are financed by equity
B) A measure of the extent to which an organization's contribution margin is affected by sales mix of products
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 costs are fixed
Correct Answer:
Verified
Q66: Salvador Company sells two products, as follows:
Q67: Sales mix refers to:
A) The portion of
Q68: Peak Company sells three different products that
Q69: Peak Company sells three different products that
Q70: Peak Company sells three different products that
Q72: Operating leverage is computed as:
A) Contribution margin
Q73: Hamilton Company has sales of 2,000 units
Q74: White Company's contribution margin ratio is 30%.
Q75: George Company has sales of 1,500 units
Q76: A firm can reduce is operating leverage
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