Question: What is operating leverage, and how does it affect a firm's business risk? Show the operating break even point if a company has fixed costs

What is operating leverage, and how does it affect a firm's business risk? Show the operating break even point if a company has fixed costs of $200, a sales price of $15, and variables costs of $10.

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Operating leverage is the change in EBIT caused by a change in quantity sold The higher the propor... View full answer

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