What measures the sensitivity of profit changes to changes in sales volume?
A) profitability ratio
B) variable cost ratio
C) contribution margin ratio
D) degree of operating leverage

Name: What measures the sensitivity of profit changes to changes in sales volume? A) profitability ratio B) variable cost ratio C) contribution margin ratio D) degree of operating leverage
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

The degree of operating leverage measures how sensitive a company's operating income is to a change in sales volume.

What Measures the Sensitivity of Profit Changes to Changes in Sales