A high degree of operating leverage: (a) indicates that a company has a larger percentage of variable

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A high degree of operating leverage:

(a) indicates that a company has a larger percentage of variable costs relative to its fixed costs.

(b) is computed by dividing fixed costs by contribution margin.

(c) exposes a company to greater earnings volatility risk.

(d) exposes a company to less earnings volatility risk.

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Financial And Managerial Accounting

ISBN: 9781118004234

1st Edition

Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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Question Posted: Feb 15, 2024 09:01 AM

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A high degree of operating leverage: (a) indicates that a company has a larger percentage of variable

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Financial And Managerial Accounting

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