Question: The degree of operating leverage is computed as Question 2 3 Answer a . percent change in operating profit divided by percent change in net
The degree of operating leverage is computed as
Question Answer
a
percent change in operating profit divided by percent change in net income.
b
percent change in operating income divided by percent change in unit volume.
c
percent change in unit volume divided by percent change in operating profit.
d
percent change in EPS divided by percent change in operating income.
Question Answer
a
greater than zero.
b
Not enough information is given to determine.
c
less than zero.
d
equal to zero.
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