2201. Which of the following is the expression for operating leverage?

Contribution/EBIT
EBT/Contribution
Contribution/EAT
Contribution/Quantity
✅ The correct answer is A.
Contribution/EBIT is the expression for operating leverage. Operating leverage is a cost-accounting formula that measures the degree to which a firm or project can increase operating income by increasing revenue.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top