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 23Answer
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 22Answer
a.
greater than zero.
b.
Not enough information is given to determine.
c.
less than zero.
d.
equal to zero.

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