q1

Which of the following statements about operating leverage is false? O a. If the degree of operating leverage higher for a company, this means that the company is more risky than another company with low degree of operating leverage. O b. Keeping all factors constant, the higher the contribution margin, the higher the operating leverage. Oc Operating leverage measures how operating income will be affected by changes in sales O d. All of the given answers are true. Oe. The degree of operating leverage is higher for companies with lower fixed costs