Wall Company incurred $30,000 of fixed cost and $40,000 of variable cost when 2,000 units...

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Accounting

Wall Company incurred $30,000 of fixed cost and $40,000 of variable cost when 2,000 units of product were made and sold. Operating leverage exists when:

small percentage changes in revenue produce large percentage changes in profit.

management buys enough of the company's shares of stock to take control of the corporation.

the organization makes purchases on credit instead of paying cash.

the organization avoids all fixed costs in its operations.

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