With regards to Operating Leverage, explain why a company with HIGH Operating Leverage faces greater financial risk
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With regards to Operating Leverage, explain why a company with HIGH Operating Leverage faces greater financial risk in a declining sales period compared to a company with LOW Operating Leverage. (HINT: The key here is the relationship between fixed costs and variable costs.)
What does a business's Contribution Margin represent?
What does the Contribution Margin have to do with Operating Leverage?
Related Book For
Pricing Strategies A Marketing approach
ISBN: 978-1412964746
1st edition
Authors: Robert M. Schindler
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