What Is The Difference Between The Margin Of Safety Ratio And The Degree Of Operating Leverage?

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What Is The Difference Between The Margin Of Safety Ratio And The Degree Of Operating Leverage?

A : 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. B : The margin of safety ratio is concerned with how far sales 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 sales. 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 concerned with how far sales 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 sales.
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B : The margin of safety ratio is concerned with how far sales 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 sales.
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