Asked by
Chassidy Cress
on Nov 19, 2024
Verified
A manufacturer of tiling grout has supplied the following data: 
The company's degree of operating leverage is closest to:
A) 9.77
B) 1.36
C) 3.53
D) 2.47
Tiling Grout
Tiling grout is a dense fluid used to fill gaps or joints between tiles, often for reinforcement, sealing, or decoration.
Operating Leverage
A measure of how sensitive a company's operating income is to a change in sales volume, indicating the proportion of fixed costs in its cost structure.
- Examine the level of operating leverage and discern its impact on the financial risk and profit margins of a business.
Verified Answer
LA
Learning Objectives
- Examine the level of operating leverage and discern its impact on the financial risk and profit margins of a business.