Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. which of the following statements about operating

Which of the following statements about operating leverage is/are likely to be true? 1. A...

80.2K

Verified Solution

Question

Accounting

image

Which of the following statements about operating leverage is/are likely to be true? 1. A firm with low operating leverage faces lower risk compared to a firm with higher operating leverage, all else being equal. 2. A firm should always try to minimise its operating leverage, all else being equal. 3. A manufacturing firm that uses more automation (and less human labour) would have a lower operating leverage compared to a firm that uses more human labour (and less automation), all else being equal. Statement 1 only Statement 2 only Statement 3 only Statements 1 and 2 only Statements 1, 2 and 3

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

General Management
1.2K views

The DeBourgh Manufacturing Company was founded in 1909 as a metal-fabricating company in Minnesota by the...

Biology
1.2K views

Match the particle or molecule to its purpose PADE 3 4 Electron e Proton H...

Biology
1.2K views

is a term used to describe a set of four groups of values EARS RDAs...

Biology
1.2K views

What is the function description of the structure labeled as 192 5 12 2 3...

Biology
1.2K views

The most ancient branch point in animal phylogeny is that between having Oradial or bilateral...

Algebra
1.2K views

As the prize in a contest you are offered 24 000 now or 45 300...

Algebra
1.2K views

1 2 x 5 2 27x 1 3 3 2x 1 2x 2 2x 2...

Accounting
1.2K views

Question 20 of 24 4 Points Tess's Tumblers offers a one year warranty on all...

Accounting
1.2K views

Based on the following information, how many days of supply of inventory is the firm...

Accounting
1.2K views

? Required information [The following information applies to the questions displayed below.] ...

Finance
1.2K views

Homework: 6-1 MyFinanceLab Assignment Score: 0 of 4 pts P6-8 (similar to) Save 5 of...

Accounting
1.2K views

Week 5 6 3 Huron Company produces a commercial cleaning compound known as Zoom. The...