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Which of the Following Calculations Can Be Used to Measure

Question 36

Multiple Choice

Which of the following calculations can be used to measure a company's degree of operating leverage?


A) Contribution margin ÷ sales.
B) Contribution margin ÷ income.
C) Sales ÷ contribution margin.
D) Sales ÷ income.
E) Sales ÷ fixed costs.

Correct Answer:

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