The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 2 percent,the operating cash flow increases by 5.3 percent.What is the degree of operating leverage if the contribution margin per unit is $47?
A) 0.38
B) 0.57
C) 1.75
D) 2.10
E) 2.65
Correct Answer:
Verified
Q95: Cool Shades,Inc.(CSI)manufactures biotech sunglasses.The variable materials cost
Q96: The Motor Works is considering an expansion
Q97: Hybrid cars are touted as a "green"
Q98: A project has a unit price of
Q99: McGilla Golf has decided to sell a
Q101: Mr.Bear,your boss,will only agree to accept a
Q102: What is operating leverage and why is
Q103: What is forecasting risk and why is
Q104: Assume that a country experiences a financial
Q105: In an effort to capture the large
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents