The Accounting Manager of Gateway Inns Has Noted That Every

Multiple Choice

The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 2 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?

A) 0.38
B) 0.57
C) 1.75
D) 2.10
E) 2.65