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    Fundamental Managerial Accounting Concepts
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    Exam 2: Cost Behavior, Operating Leverage, and Profitability Analysis
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    Which of the Following Equations Can Be Used to Compute
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Which of the Following Equations Can Be Used to Compute

Question 141

Question 141

Multiple Choice

Which of the following equations can be used to compute a firm's magnitude of operating leverage?


A) Net income ÷ Sales
B) Fixed costs ÷ Contribution margin
C) Contribution margin ÷ Net income
D) Net income ÷ Contribution margin

Correct Answer:

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