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satela [25.4K]
3 years ago
14

If Q equals the units sold, P is the selling price per unit, V is the variable expense per unit, and F is the fixed expense, the

n the degree of operating leverage is equal to: a. Q/(P-V). b. F/(P-V). c. F/[(P-V)/P]. d. [(P-V)Q]/[(P-V)Q-F].
Business
1 answer:
lakkis [162]3 years ago
7 0

Answer:

The correct answer is: option D

Explanation:

The degree of operating leverage (DOL) is a measure used to evaluate how a company's operating income changes after a percentage change in its sales. A company's operating leverage involves fixed costs and variable costs. It is a financial ratio that measures the sensitivity of a company’s operating income to its sales. This financial metric shows how a change in the company’s sales will affect its operating income.

There are two main formulas to calculate the DOL:

DOL= Contribution Margin/ Operating Income

or

DOL= [Qx(P-V)] / [QX(P-V)-F)

Where:

Q: the number of units

P: the price per unit

V: the variable cost per unit

F: the fixed costs

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Answer:

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4 0
3 years ago
_______would Not be considered a "vulnerable group" for the purpose of customer protection.
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Answer:

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7 0
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