Contribution margin is $34000 and operating income is $12000, then degree of operating leverage will be
A. 4.84
B. 2.84
C. 3.84
D. 5.84
Answer: Option B
Solution(By Examveda Team)
Degree of operating leverage = Contribution margin ÷ Operating income= $34000 ÷ $12000 = 2.84.
This Question Belongs to Management >> Management Accounting
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