Operating leverage is a measure of the: a. Sensitivity of net earnings to changes in operating earnings.

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Operating leverage is a measure of the:

a. Sensitivity of net earnings to changes in operating earnings.

b. Sensitivity of net earnings to changes in sales.

c. Sensitivity of fixed operating costs to changes in variable costs.

d. Sensitivity of earnings before interest and taxes to changes in the number of units produced and sold.

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 12:55 AM

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Operating leverage is a measure of the: a. Sensitivity of net earnings to changes in operating earnings.

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Fundamentals of corporate finance

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