The degree of operating leverage is closest to:
A)6.72
B)13.44
C)0.15
D)0.07

Name: The degree of operating leverage is closest to: A)6.72 B)13.44 C)0.15 D)0.07
Brand: Quizplus
Rating: 4.9 (29 reviews)

Question

Quizplus · Accepted Answer

The degree of operating leverage (DOL) is calculated as the percentage change in operating income divided by the percentage change in sales. Without specific data, we assume the closest value to a typical DOL, which is often greater than 1, is 6.72.

The Degree of Operating Leverage Is Closest To