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pduvin pduvin
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6 years ago
In a company with low operating leverage
A) fixed costs are high and variable costs are low.
B) small increases in sales lead to large increases in operating income.
C) there is a higher possibility of net loss than a higher-leveraged firm.
D) less risk is assumed than in a highly leveraged firm.
E) companies follow the strategy of replacing variable costs with fixed costs.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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MunihasenMunihasen
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pduvin Author
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6 years ago
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