If you experience much higher sales than expected this year, which kind of operating leverage would you
Question:
If you experience much higher sales than expected this year, which kind of operating leverage would you like to have in your company for profit maximization?
a. High operating leverage
b. Low operating leverage
c. Medium operating leverage
d. Operating leverage does not affect profitability.
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The correct answer is A A highly leveraged company has high fixed costs and low v...View the full answer
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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