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Firms with a high degree of operating leverage are: 1. Using higher fixed costs in their operating structure 11. Easily capable of surviving large changes

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Firms with a high degree of operating leverage are: 1. Using higher fixed costs in their operating structure 11. Easily capable of surviving large changes in sales volumes III. Keeping operating risk low in order to carry greater financial risk Select one: A. I only B. I and ll only C. I and Ill only Significantly affected by changes in interest rates D. and III Sales 30,000 unts) Vanable costs Contributions man Fed manufacturing costs Operating Income Earnings Before Tastes Tes (397 Net Income shares Outing 600 Based upon the information above, the firm's degree of financial leverage is: Select one: A. 3.50 B. 1.40 O C. 1.95 D. 1.58

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