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Which of the following statement is true? -Operating leverage refers to a company's ability to...

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Accounting

Which of the following statement is true?

-Operating leverage refers to a company's ability to increase its sales volume while decreasing its total fixed cost.

-A company that has only variable cost cannot benefit from operating leverage.

-To benefit from operating leverage a company must have both fixed and variable costs.

-Operating leverage may help a company increase its profitability but it cannot decrease profitability.

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