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QUESTION
The degree of operating leverage (DOL), at a given sales volume, is equal to: (Operating profit fixed expenses) sales. (Sales variable expenses)...
The degree of operating leverage (DOL), at a given sales volume, is equal to:
(Operating profit − fixed expenses) ÷ sales.
(Sales − variable expenses) ÷ operating profit.
Operating profit ÷ (fixed expenses - variable expenses).
Sales ÷ (fixed expenses - operating profit).
Fixed costs ÷ Total contribution margin.
