American_Bankers_Association
CTFA · Question #64
A firm's degree of operating leverage (DOL) depends primarily upon its:
The correct answer is C. Closeness to its operating break-even point. See the full explanation below for the reasoning.
Investment Management
Question
A firm's degree of operating leverage (DOL) depends primarily upon its:
Options
- ASales variability
- BLevel of fixed operating costs
- CCloseness to its operating break-even point
- DDebt-to-equity ratio
How the community answered
(27 responses)- A7% (2)
- B19% (5)
- C70% (19)
- D4% (1)
Topics
#operating leverage#DOL#break-even point#fixed costs
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