Question: 6.) How does operating leverage affect business risk? 8.) Explain this statement: Using leverage has both good and bad effects. A firm has fixed operating

6.) How does operating leverage affect business risk?

8.) Explain this statement: "Using leverage has both good and bad effects." A firm has fixed operating costs of P100,000 and variable costs of P4 per unit. If it sells the product for P6 per unit, what is the break-even quantity?

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