Degree of operating leverage. One question. Example: The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 3.3 percent, the operating cash flow increases by 4.6 percent. What is the degree of operating leverage if the contribution margin per unit is $477
Degree of operating leverage. One question. Example: The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 3.3 percent, the operating cash flow increases by 4.6 percent. What is the degree of operating leverage if the contribution margin per unit is $477
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
Section: Chapter Questions
Problem 3E
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What is the Degree of Operating Leverage ? ( this is a sample question, I need to know the process of finding DOL)
![Degree of operating leverage. One question. Example:
The accounting manager of Gateway Inns has noted that every time the inn's average
occupancy rate increases by 3.3 percent, the operating cash flow increases by 4.6
percent. What is the degree of operating leverage if the contribution margin per unit is
$47?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F102c784c-1369-4842-a65a-fbd53466243a%2F911bd365-6e63-487b-b56e-11478caf8423%2F95abxqj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Degree of operating leverage. One question. Example:
The accounting manager of Gateway Inns has noted that every time the inn's average
occupancy rate increases by 3.3 percent, the operating cash flow increases by 4.6
percent. What is the degree of operating leverage if the contribution margin per unit is
$47?
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