Question: Operating leverage is calculated as operating profit divided by contribution margin. Select one: True False

Operating leverage is calculated as operating profit divided by contribution margin.

Select one:

True

False

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

QUESTION 1 The margin of safety is the difference between: O actual sales and budgeted sales. O actual sales and break-even sales. O target sales and actual sales. O target sales and budgeted sales...

Q:

Degree of operating leverage is calculated as A. profit divided by contribution margin. B. break-even sales divided by profit. C. profit divided by break-even sales. D. contribution margin divided by...

Q:

Operating leverage is calculated as operating profit divided by contribution margin. Question 3Select one: True False

Q:

21.) The formula to calculate the break-even point in dollars is: Fixed Cost divided by unit contribution margin. Select one: True False 22.) Sales: 20,000 units Variable costs per unit: $12 Fixed...

Q:

Covid-19: Time to Refocus on Supply Chain Resilience It happened faster than anyone could imagine. As China sent workers home and shuttered businesses in January to contain the coronavirus outbreak,...

Q:

How is the degree of operating leverage calculated? a. Degree of operating leverage = Total contribution margin Profit b. Degree of operating leverage = Profit Total contribution margin C. Degree of...

Q:

A balance sheet shows: A: the assets, liabilities, and owner's equity of a particular business. B: a business's profit. C:all costs incurred over a period of time. D: a business's activities over a...

Q:

A balance sheet shows: A: the assets, liabilities, and owner's equity of a particular business. B: a business's profit. C:all costs incurred over a period of time. D: a business's activities over a...

Q:

A balance sheet shows: A: the assets, liabilities, and owner's equity of a particular business. B: a business's profit. C:all costs incurred over a period of time. D: a business's activities over a...

Q:

finance Other things held constant, the higher a firm's target payout ratio, the higher its expected growth rate should be Select one: True False The date on which a firm's directors issue a...

Q:

Calculate the deviance chi-square goodness-of-fit test by hand for the Cancercells data given in Table 7.3. Expected counts, degrees of freedom, and p-values are found the same way as in the Pearson...

Q:

Esther is a property manager. On 1 June 2015, it listed 1,000 bonds with interest of 13.0 percent p.a. paid semi-annually at a face value of $100 and maturing on 1 June 2018. The bonds were issued at...

Q:

To perform the internal control often referred to as the three - way match, which documents details are reconciled prior to recording a purchase transaction? Question 1 5 options: pre - listing,...

Q:

Fill in the blanks in the divided difference table: 2 y 1 1 a 3 9 4 16 a = 4, b = 7, =1 a) a=8, (b = 7, = 3 b) @=4, 6=7, = 1 a) @=8, b = 7, =3 b) > @=8, 0=4, 3 c) a=7, (b) = 4, =3 d)