How Is the Degree of Operating Leverage Useful

Multiple Choice

How is the degree of operating leverage useful?

A) It measures the cushion between sales and breakeven sales.
B) It measures the sales revenue needed to reach a target profit.
C) It measures the amount by which a company's sales can decline before losses are incurred.
D) It measures the impact on net operating income of a given percentage change in sales.
E) It measures the impact on net operating income of a given dollar change in sales.