Question: Which of the following will increase BOTH the operating leverage and the financial leverage? Assume operating cash flow OCF=(P-c)*Q-FC, where P is the price, c
Which of the following will increase BOTH the operating leverage and the financial leverage? Assume operating cash flow OCF=(P-c)*Q-FC, where P is the price, c is the variable cost, Q is the quantity of goods sold, and FC is the fixed costs 1 . I Holding P.6, and FC constant, increase B. Holding P.c, and constant, increase FC C. Holding sales (ie.,pxQ), and FC constant, increase P D. None of the above
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