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34kurt
3 years ago
12

Operating leverage predicts the effects that fixed costs have on operating income when​ ________. A. there are no sales returns

B. sales volume changes C. production is discontinued D. variable costs change
Business
1 answer:
andrew-mc [135]3 years ago
3 0

Answer:

 B. sales volume changes 

Explanation:

Operating leverage measures the effect of fixed cost on operating income when volume of sales change.

Operating leverage is created when a firm has fixed operational expenses. E.g. depreciation.

The degree of operating leverage = percentage change in operating income/ percentage change in unit sold

Operational income = Revenue - operating expenses - Cost of goods sold.

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<h3>What is  a chart of accounts?</h3>

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