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a measure of how sensitive net operating income is to a given percentage change in dollar sales is known as what?

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Final answer:

Operating leverage measures the sensitivity of net operating income to changes in sales, differing from income elasticity of demand which relates to quantity demanded and income changes.

Step-by-step explanation:

A measure of how sensitive net operating income is to a given percentage change in dollar sales is known as operating leverage. This concept is different from the income elasticity of demand, which is the percentage change in quantity demanded divided by the percentage change in income. Operating leverage is crucial for businesses as it helps them understand how a change in sales levels can impact their income.

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