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If a company has very low operating leverage (i.e., a very low proportion of fixed costs in the cost structure) and no changes are expected
If a company has very low operating leverage (i.e., a very low proportion of fixed costs in the cost structure) and no changes are expected in operations, then None of the below using common-size income statement percentages will overstate future projected operating expenses. using common-size income statement percentages can serve as a reasonable basis for projecting future operating expenses. using common-size income statement percentages will understate future projected operating expenses
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