Final answer:
The degree of operating leverage may be defined as the percent change in operating income divided by the percent change in unit volume, Q(P - VC) divided by Q(P - VC) - FC, or S - TVC divided by S - TVC - FC. The correct answer is D. All of the options.
Step-by-step explanation:
The degree of operating leverage may be defined as:
A. the percent change in operating income divided by the percent change in unit volume.
B. Q(P - VC) divided by Q(P - VC) - FC.
C. S - TVC divided by S - TVC - FC.
D. All of the options
The correct answer is D. All of the options. The degree of operating leverage measures the sensitivity of operating income to changes in unit volume, and all the given options represent different ways of calculating it.