If you experience much higher sales than expected this year, which kind of operating leverage would you

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If you experience much higher sales than expected this year, which kind of operating leverage would you like to have in your company for profit maximization?

a. High operating leverage

b. Low operating leverage

c. Medium operating leverage

d. Operating leverage does not affect profitability.

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Question Posted: Dec 28, 2011 04:30 AM

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If you experience much higher sales than expected this year, which kind of operating leverage would you

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The correct answer is A A highly leveraged company has high fixed costs and low v...View the full answer

Accounting concepts and applications

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