financial liverage

Maneesh 30 April 2020 at 15:08 PM

A higher degree of operating leverage compared with the industry average implies that the firm
A) Has higher variable costs.
B) Has profits that are more sensitive to changes in sales volume
C) Is less risky
D) Is more profitable.

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FACULTY 10 May 2020 at 03:30 PM

Has profits that are more sensitive to changes in sales volume (option D)

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