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Which of the following companies would you expect to have thehighest operating leverage number...

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Accounting

Which of the following companies would you expect to have thehighest operating leverage number and which would have the lowest?Be sure to explain your choices.
Amazon
Intel
Walmart

Answer & Explanation Solved by verified expert
4.2 Ratings (545 Votes)
Operating leverage Operating leverage is the degree to which a firm or project can increase operating income by increasing revenue A business that generates sales with a high gross margin and low variable costs has high operating leverage The higher the degree of operating leverage the greater the potential danger from forecasting risk where a relatively small error in forecasting sales can be magnified into large    See Answer
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In: AccountingWhich of the following companies would you expect to have thehighest operating leverage number and...Which of the following companies would you expect to have thehighest operating leverage number and which would have the lowest?Be sure to explain your choices.AmazonIntelWalmart

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