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i) What is Operating Leverage, and what percent change (sensitivity) does it measure? ii) Provide two measures of Operating Leverage, their equations and explain all

i) What is Operating Leverage, and what percent change (sensitivity) does it measure?

ii) Provide two measures of Operating Leverage, their equations and explain all the variables used in the equations.

iii) Which of the two measures is likely to reflect greater sensitivities and why?

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