Which of the following statements is true of operating leverage?
A) It is the difference between price and unit variable cost.
B) It is the use of fixed costs to increase the percentage changes in profits as sales activity changes.
C) It shows how far a company's actual sales and/or units are above or below the break-even point.
D) It is the ratio of total contribution margin to sales or of unit contribution to price.
E) None of these
Correct Answer:
Verified
Q87: Contribution margin ratio: _%
Q118: A company provided the following data:
Q119: Workshape Company sells office chairs at $400
Q120: Which of the following equations calculates the
Q121: Firm X and Firm Y are competitors
Q124: Which of the following shows how far
Q125: Which of the following can be considered
Q126: Given the following numbers from Webster Company,
Q127: A "what-if" technique used to see what
Q128: The degree of operating leverage is calculated
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