Question: What does it mean when a company has an operating leverage of 5? 1% change in sales and contribution margin will result in a 5%

What does it mean when a company has an operating leverage

What does it mean when a company has an operating leverage of 5? 1% change in sales and contribution margin will result in a 5% change in Net Income. 5% change in sales and contribution margin will result in a 1% change in Net Income. The company is low risk because the company has a low proportion of fixed costs. None of the above

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