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A firm with greater operating leverage: a.Will have greater sales than otherwise identical firms. b.Shows a higher percentage change in earnings for a given percentage

A firm with greater operating leverage:

a.Will have greater sales than otherwise identical firms.

b.Shows a higher percentage change in earnings for a given percentage change in sales.

c.Shows a lower percentage change in earnings for a given percentage change in sales.

d.Tends to make greater use of variable costs in its cost structure.

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