Week 8 Discussion Answer

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Week 8 Discussion

  1. Something old, something new: Did you learn something in this chapter that you did not know before? Or, did you gain confidence because you determined that you have already mastered a concept presented in this chapter?
  2. Managerial Accounting :  How does the Degree of Operating Leverage assist managers in their analysis of the company?

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Week 8 Discussion Answer

Operating leverage determines how changes in sales impact the operating income. The degree of operating leverage is computed by dividing the contribution margin by the net operating income.

This question is taken from Accounting 102 – Managerial Accounting » Spring 2021 » Discussions