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Which of the following is true regarding company's operating leverage? Multiple Choice Companies with high...

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Accounting

Which of the following is true regarding company's operating leverage?
Multiple Choice
Companies with high fixed costs are considered to be highly leveraged, which can lead to higher profits in favorable business conditions.
(
Companies with low fixed costs are considered to be lowly leveraged, which leads to less stability in favorable business conditions.
Companies with low fixed costs are considered to be highly leveraged, which can lead to higher profits in favorable business conditions.
Companies with high fixed costs are considered to be lowly leveraged which can lead to higher profits in favorable business conditions.
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