Question: The effect on a companys profit that is using a high degree of Operating Leverage would be: A) much larger than a company that has

The effect on a companys profit that is using a high degree of Operating

Leverage would be:

A) much larger than a company that has a low degree of operating leverage.

B) not affected at all.

C) will be lower that a company that has low degree of operating leverage.

D) will have less risk of reduced profit in an economich down turn.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!