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Question 5 (1 point) XYZ Co. has operating leverage of 4 at its current level of sales volume and input and output prices. Management is
Question 5 (1 point) XYZ Co. has operating leverage of 4 at its current level of sales volume and input and output prices. Management is unwilling to let the operating leverage increase because they do not want the firm to take on more risk than it now has. For each of the following events, indicate whether the event will increase, decrease or not change the operating leverage from its current level of 4. (Assume that when one factor listed below changes, all other things stay the same unless they must change-for example, when volume increases, total variable costs must increase.) (a) Selling price decreases (sales volume stays the same) (b) Total fixed costs decrease
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