Frank corp has a contribution margin of $450,000 and profit of $150,000. what is its degree of operating leverage?
2.5
3
.33
1.67

3

Step-by-step explanation:

given: contribution margin=$450,000 and net profit= $150,000

To find operating leverage

Now, operating leverage is a cost accounting formula that measures the degree to which a firm or project can increase operating income by increasing revenue. A business that generates sales with a high gross margin and low variables costs has high leverage.

therefore, operating leverage= =3

operating leverage is 3

to find the total number of combinations, multiply the quantity of each item by each other:

2 pairs of shoes x 3 pairs of shorts = 6 different combinations.