q 6.19: What is the difference between the margin of safety ratio and the degree of operating leverage? A The degree of operating leverage is concerned with how far sales revenue could drop before the company begins operating at a loss, while the margin of safety ratio is computed to determine how the net income is impacted by fluctuations in sales revenue. B The margin of safety ratio is concerned with how far sales revenue could drop before the company begins operating at a loss, while the degree of operating leverage is computed to determine how the net income is impacted by fluctuations in sales revenue. C The margin of safety ratio is dependent upon the net income of the company, while the degree of operating leverage is dependent upon the actual sales of the company. D The degree of operating leverage is dependent upon break-even sales amounts, while the margin of safety ratio is dependent upon the contribution margin of the company