In a company with low operating leverage

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Part 1

A.

companies follow the strategy of replacing variable costs with fixed costs.

B.

less risk is assumed than in a highly leveraged firm.

C.

fixed costs are high and variable costs are low.

D.

small increases in sales lead to large increases in operating income.

E.

there is a higher possibility of net loss than a higherleveraged firm.

In a company with low operating leverage *** O A. companies follow the strategy of replacing variable costs with fixed costs. B. less risk is assumed than in a highly leveraged firm. C. fixed costs are high and variable costs are low. D. small increases in sales lead to large increases in operating income. OE. there is a higher possibility of net loss than a higher leveraged firm