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ABC Company has a higher degree of operating leverage than DEF Compary. This means that ABC; will be able to survive more easily than DEF
ABC Company has a higher degree of operating leverage than DEF Compary. This means that ABC;
will be able to survive more easily than DEF when their indusery is doing poorly
has a higher proportlon of variable cosis than DEF.
has a higher proportion of fixed costs than DEF.
has smaller profit swings than DEF when sales fluctuate.
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