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High operating leverage represents increased risk associated with relatively: High variable costs in the firm's cost structure. High fixed cost in the firm's cost structure.
High operating leverage represents increased risk associated with relatively:
High variable costs in the firm's cost structure. | ||
High fixed cost in the firm's cost structure. | ||
High sales revenue combined with high variable costs. | ||
High asset turnover. | ||
High levels of unit-level (i.e., volume-related) costs. |
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