Question: 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

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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