Economics · Financial Management
Which of the following is NOT a correct formula to compute the Degree of Operating Leverage?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Operating Leverage = Fixed CostFixed Cost + Variable Cost✓
- 2Operating Leverage = % of change in Operating Income% of change in Sales
- 3Operating Leverage = Contribution MarginOperating Income
- 4All of the above formulas are correct
Correct answer
Operating Leverage = Fixed CostFixed Cost + Variable Cost
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