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Which of the following statements is correct? In a pure variable cost structure, when revenue increases by $1, so do profits. A company with a
Which of the following statements is correct?
In a pure variable cost structure, when revenue increases by $1, so do profits. | ||
A company with a pure fixed cost structure and no profits has an operating leverage of 0. | ||
A pure fixed cost structure results in a smaller operating leverage than a pure variable cost structure. | ||
A pure fixed cost structure yields smaller profits than a pure variable cost structure. | ||
A company with a mixed cost structure and positive profits has an operating leverage greater than 1. |
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