As projected net income increases the
A)degree of operating leverage declines.
B)margin of safety stays constant.
C)break-even point goes down.
D)contribution margin ratio goes up.

Question

Quizplus · Accepted Answer

As projected net income increases, the degree of operating leverage declines because the company is generating more profit relative to its fixed costs, reducing the impact of fixed costs on overall profitability.

As Projected Net Income Increases the