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Management · Q276

Management Accounting

Graduate and Post Graduate · Management · question 276

Q276

Contribution margin is 34000 and operating income is 12000, then degree of operating leverage will be

A.
4.84
B.
2.84
Answer
C.
3.84
D.
5.84

Answer: Option B

Solution

Answer: Option B
Solution:
Degree of operating leverage = Contribution margin ÷ Operating income
= 12000 = 2.84.
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