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Which of the following is the correct interpretation of a degree of operating leverage of 5 ? Operating leverage of 5 means that sales can
Which of the following is the correct interpretation of a degree of operating leverage of
Operating leverage of means that sales can decrease by before the firm's current level of sales will hit the breakeven point.
Operating leverage of means that if sales increase by the firm will hit its breakeven point.
Operating leverage of means that if sales increase by there will be a increase in the firm's income.
Operating leverage of measures the degree of debt employed by the firm's debt structure.
Operating leverage of means that the company would need to increase sales by times in order to hit its breakeven point.
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