________ is the impact of a specific change in sales volume on net operating income.
A) Continuous system
B) Chronological processing
C) Debt capacity
D) Operating leverage
E) Intermittent system

Question

Quizplus · Accepted Answer

The impact of a specific change in sales volume on net operating income is known as operating leverage. It measures the degree to which a firm's net operating income changes in response to a change in sales volume, and it is calculated as the contribution margin divided by net operating income. A higher operating leverage means that a small change in sales volume can have a larger effect on the net operating income.

________ Is the Impact of a Specific Change in Sales