The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 2.5 percent, the operating cash flow increases by 5.3 percent. What is the degree of operating leverage if the contribution margin per unit is $47? - 2.10 -.57 -2.12 -.47 - 1.75
The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 2.5 percent, the operating cash flow increases by 5.3 percent. What is the degree of operating leverage if the contribution margin per unit is $47? - 2.10 -.57 -2.12 -.47 - 1.75
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...
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Transcribed Image Text:The accounting manager of Gateway Inns has noted that every time the
inn's average occupancy rate increases by 2.5 percent, the operating
cash flow increases by 5.3 percent. What is the degree of operating
leverage if the contribution margin per unit is $47?
- 2.10
-.57
-2.12
-.47
- 1.75
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