Question: Operating Leverage. High operating leverage means: The company has relatively high fixed costs. The company has relatively low fixed costs. The company will have to

Operating Leverage. High operating leverage means:

  1. The company has relatively high fixed costs.

  2. The company has relatively low fixed costs.

  3. The company will have to sell fewer units than a comparable company with low operating leverage to break even.

  4. The company will have to sell more units than a comparable company with low operating leverage to break even.

  5. Both (2) and (3) are correct.

  6. Both (1) and (4) are correct.

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