Question: 1.Operating leverage enables a company to convert small changes in fixed costs into dramatic changes in profitability. True False 2. If a company decreases its

1.Operating leverage enables a company to convert small changes in fixed costs into dramatic changes in profitability. True False

2. If a company decreases its fixed costs and increases its variable costs, it will lower both the level of risk and its potential for profits. True False

3 If revenues are expected to decline, management should attempt to convert its fixed costs into variable costs. True False

Can you give an explanation, please ?

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