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Assume a firm has a high operating leverage and sales decrease. Which of the following is true? a . The firm has a high proportion
Assume a firm has a high operating leverage and sales decrease. Which of the following is true?
a
The firm has a high proportion of fixed costs.
b
The firm has less opportunity for higher profits with an increase in sales.
c
The firm has a high proportion of variable costs.
d
The first has a lower contribution margin compared to a firm with a low operating leverage.
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