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Business

Accounting

Identify the formula that computes the degree of operating leverage (DOL).

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 17MC: In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs...

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Question

Identify the formula that computes the degree of operating leverage (DOL).

a.Total variable cost / Sales

b.Unit variable cost / Price

c.Break-even sales / Variable cost ratio

d.Total contribution margin / Operating income

e.Sales / Unit contribution marg

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