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1. If company A has a higher degree of operating leverage than company B, then which of the following statements is true? A) Company A
1. If company A has a higher degree of operating leverage than company B, then which of the following statements is true?
A) Company A has higher variable expenses.
B) Company A's profits are more sensitive to percentage changes in sales.
C) Company A is more profitable.
D) Company A is less risky.
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