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Which of the following statements is true?I If the degree of operating leverage in a company is 4 , it means the firm's total contribution
Which of the following statements is true?I If the degree of operating leverage in a company is it means the firm's total contribution margin grows four times as fast as its sales.Il The degree of operating leverage is computed by dividing sales by the contribution margin.Ill A company with high fixed cost structure will experience a greater increase in net operating income in a period ofincreasing sales volume than a company with lower portion of fixed costs.ABDEStatements I and IlI are true.All of the statements are true.Statements Il and III are true.Only statement IlI is true.None of the statements are true.
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