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Fixed Cost per unit is constant within a relevant range of production. True False If a company has a degree of operating leverage equal to
Fixed Cost per unit is constant within a relevant range of production. True False If a company has a degree of operating leverage equal to 1.129 then a 5% increase in sales will result in a 22.58% increase in operating income. True False If a company wishes to increase its operating income by $28,000 and currently has a contribution margin ratio of 60%, then sales would have to increase by $40,000. True False If two companies have identical break-even points in units, then they must have identical margin of safety in revenue dollars. True False If two companies have identical operating leverage ratios (DOL), then they must have identical Fixed Cost per unit ratios. True
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