High operating leverage means: (1) The company has relatively low fixed costs. (2) The company has relatively
Question:
High operating leverage means:
(1) The company has relatively low fixed costs.
(2) The company has relatively high fixed costs.
(3) The company will have to sell more units than a comparable company with low operating leverage to break even.
(4) The company will have to sell fewer units than a comparable company with low operating leverage to break even.
(5) Both (2) and (3) are correct.
(6) Both (1) and (4) are correct.
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