Question 11 Which of the following is not true of operating leverage? Selected Answer: Answers: B. If the margin of safety is the higher, operating leverage is the higher. A. It is measured by dividing contribution margin by profit. B. If the margin of safety is the higher, operating leverage is the higher. C. If fixed costs are used more, its operating leverage becomes higher. D. If operating leverage is the higher, for a given sales change, the income change is the greater.

Which of the following is not true of operating leverage? Selected Answer: Answers: B. If the margin of safety is the higher, operating leverage is the higher. A. It is measured by dividing contribution margin by profit. B. If the margin of safety is the higher, operating leverage is the higher. c. If fxed costs are used more, its operating leverage becomes higher. D. If operating leverage is the higher, for a given sales change, the income change is the greater