1. The difference between contribution margin and income from operations is___.
a. net income.
b. variable costs.
c. fixed costs.
d. one of these choices are correct.
2. A company's operating leverage is computed as:.
a. contribution margin divided by income from operations.
b. profit margin divided by net income.
c. revenue divided by expenses.
d. none of these choices are correct.
3. The is the relative distribution of sales among the products sold by a company.
a. sales mix.
b. mixed cost.
c. product mix.
d. none of these choices are correct.
4. The unit selling price of the overall enterprise product equals the.
a. average selling price of the products.
b. price of the highest-selling product in the mix.
c. sum of the unit selling prices of each product multiplied by its sales mix percentage.
d. price of the product with the lowest selling price.
Answers: 3
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1. The difference between contribution margin and income from operations is___.
a. net income.
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