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22. The degree of operating leverage A. can be computed by dividing total contribution margin by net income B. provides a measure of the company's
22. The degree of operating leverage A. can be computed by dividing total contribution margin by net income B. provides a measure of the company's earnings volatility C. affects a company's break-even point D. all of the above E. none of the above 23. Cost structure A. refers to the relative proportion of fixed versus variable costs that a company incurs. B. generally has little impact on profitability C. cannot be significantly changed by companies D. refers to the relative proportion of operating versus nonoperating costs that a company incurs E. none of the above 24. Fixed manufacturing overhead costs are recognized as A. period costs under absorption costing B. product costs under absorption costs C. product costs under variable costing D. part of ending inventory costs under both absorption and variable costing E. none of the above 25. Incremental analysis is the process of identifying the financial data that A. do not change under alternative courses of action. B. change under alternative courses of action. C. are mixed under alternative courses of action. D. any of the above E. none of the above
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