Question: QUESTION 13: Operating leverage is similar to financing leverage but the fixed costs we are interested in are fixed financing costs such as interest expense.

QUESTION 13: Operating leverage is similar to financing leverage but the fixed costs we are interested in are fixed financing costs such as interest expense.

  1. True

    False

2.5 points

QUESTION 14: As sales increase above the break-even point, leverage will increase regardless of the measure being used.

  1. True

    False

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