Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 41. a company with a higher operating leverage wou

41. A company with a higher operating leverage would have fixed costs CM % variable...

90.2K

Verified Solution

Question

Accounting

image

41. A company with a higher operating leverage would have fixed costs CM % variable costs, resulting in a fairly and An example would be operating leverage companies also have Higher risk if volume decreases and potential reward if volume increases. The opposite is true for operating leverage. An example would be companies with fairly 42. A company with a lower operating leverage would have fixed costs and CM % variable costs, resulting in a fairly 43. Changes in volume have more of an impact on the operating income at operating leverage companies than at operating leverage companies 44. The operating leverage factor, at a given level of sales, is computed as 45. The operating leverage factor indicates the change in that will occur from a % change in volume 46. The lowest possible operating leverage factor is which will only occur if the In this case, the company has absolutely company has no have no sales since the worst that can happen is if they were to

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students