If the operating leverage factor is known, which of the following can be determined?

A) Contribution margin ratio
B) Contribution margin in dollars
C) Break-even point in sales dollars
D) Percentage change in profit for a given percentage change in sales

Operating Leverage Factor

A measure that quantifies the proportion of fixed versus variable costs in a company's operating structure, indicating sensitivity to changes in sales volume.

Contribution Margin Ratio

The contribution margin ratio is the percentage of revenue that exceeds total variable costs, indicating how much of the sales revenue is available to cover fixed costs and generate profit.

Sales Dollars

The total revenue generated from the sale of goods or services, expressed in monetary units.