Which of the following calculations can be used to measure a company's degree of operating leverage?
A. Sales ÷ contribution margin.
B. Sales ÷ fixed costs.
C. Contribution margin ÷ sales.
D. Contribution margin ÷ income.
E. Sales ÷ income.
Answer: D
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Firms initially record property, plant, and equipment, sometimes referred to as fixed assets, at acquisition cost, the cash paid or the fair value of other consideration given in exchange for the asset. Which of the following is/are true?
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