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Which of the following statements regarding operating leverage are true: I: Higher degree of operating leverage represents a more stable company II: Higher degree of

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Which of the following statements regarding operating leverage are true: I: Higher degree of operating leverage represents a more stable company II: Higher degree of operating leverage represents a more volatile relationship with changes in sales levels III: Operating leverage is a way to compare products within a company but is an inappropriate way to compare products between different companies IV: A higher degree of operating leverage indicates a higher amount of fixed cost relative to variable cost IV only II only II, IV II, III, IV

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