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Which of the following is TRUE regarding operating leverage? A high operating leverage indicates the company is doing well. Companies with high operating leverage should

Which of the following is TRUE regarding operating leverage?

A high operating leverage indicates the company is doing well.

Companies with high operating leverage should save during profitable years to cover the costs of years when sales are low.

Companies with low operating leverage have high fixed costs but lower variable costs.

Operating leverage decreases the sensitivity of the firm's operating income to the change of sales.

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