What is the degree of operating leverage

Reference no: EM13289570

The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 3 percent, the operating cash flow increases by 7.11. What is the degree of operating leverage if the contribution margin per unit is 4?

2.37
.59
3.31
6.37
5.07

Reference no: EM13289570

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What is the degree of operating leverage : The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 3 percent, the operating cash flow increases by 7.11. What is the degree of operating leverage if the contribution margin per unit is 4?

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