A company has a favourable operating leverage. How fast does its revenue increase?
A) faster than EBIT
B) faster than fixed costs
C) slower than EBIT
D) slower than fixed costs
Correct Answer:
Verified
Q20: Under which situation will a company use
Q21: What financial technique is used to determine
Q22: What financial technique is used to determine
Q23: What does the following formula calculate?
Contribution margin
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Contribution
Q24: A company's revenue increases by 10% while
Q26: What does the following formula calculate?
EBIT
-------------------
EBIT -
Q27: A company's EBIT increases by 10% while
Q28: Given the following information, what is the
Q29: What does the following formula calculate?
Contribution margin
------------------------
EBIT
Q30: What is the combined leverage of a
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