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Management · Q306

Management Accounting

Graduate and Post Graduate · Management · question 306

Q306

If contribution margin is 72000 and operating income is 12000, then degree of operating leverage would be

A.
8
B.
7
C.
6
Answer
D.
5

Answer: Option C

Solution

Answer: Option C
Solution:
Degree of operating leverage = Contribution margin ÷ Operating income
= 12000 = 6.
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