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
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 full answer
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