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The Degree of Operating Leverage (DOL), at a Given Sales

Question 70

Multiple Choice

The degree of operating leverage (DOL) , at a given sales volume, is equal to:


A) (Operating profit − fixed expenses) /sales.
B) (Sales − variable expenses) /operating profit.
C) Operating profit/(fixed expenses − variable expenses) .
D) Sales/(fixed expenses A − operating profit) .
E) Fixed costs/Total contribution margin.

Correct Answer:

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