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The Degree of Operating Leverage Is Equal To

Question 13

Multiple Choice

The degree of operating leverage is equal to:


A) the percentage change in quantity divided by the percentage change in OCF.
B) the percentage change in sales divided by the percentage change in OCF.
C) 1 + FC/OCF.
D) 1 + VC/OCF.
E) 1 - (FC + VC) /OCF.

Correct Answer:

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