Question: Which statement is correct regarding operating leverage? Select answer from the options below Companies with high operating leverage will have larger operating profit fluctuations when

Which statement is correct regarding operating leverage?

Select answer from the options below

Companies with high operating leverage will have larger operating profit fluctuations when sales fluctuate than companies with low operating leverage.

Companies with high operating leverage will have fewer profit fluctuations when sales fluctuate than companies with low operating leverage.

A company with high operating leverage will have a lower profit than a company with low operating leverage.

A company with high operating leverage will have a higher profit than a company with low operating leverage

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!