
MANAGERIAL ACCOUNTING >C<
3rd Edition
ISBN: 9781259948503
Author: Whitecotton
Publisher: MCG CUSTOM
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Question
Chapter 6, Problem 16Q
To determine
Introduction:
The degree of operating leverage is used to assess how the percentage change in sales can change company’s operating income. It calculates the element of risk that is a result of the cost structure of the company including both variable cost and fixed cost.
To explain:
Use of degree of operating leverage to predict changes in profit.
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Chapter 6 Solutions
MANAGERIAL ACCOUNTING >C<
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