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Which of the following statements about operating leverage is false? O a. Operating leverage measures how operating income will be affected by changes in sales
Which of the following statements about operating leverage is false? O a. Operating leverage measures how operating income will be affected by changes in sales O b. Keeping all factors constant, the higher the contribution margin, the higher the operating leverage. Oc. The degree of operating leverage is higher for companies with higher fixed costs O d. All of the given answers are true. O e. If the degree of operating leverage higher for a company, this means that the company is less risky than another company with low degree of operating leverage. Holding other factors constant, a company's contribution margin per unit will increase with: O a. any decrease in the selling price per unit O b. increase in its total fixed costs Oc. All answers given are NOT correct. O d. any increase in quantity sold. O e. any decrease in variable cost per unit
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