Penco Industries has a small margin of safety % and a high degree of operating leverage; this means it is likely that Penco has a high reliance on fixed costs.

Name: Penco Industries has a small margin of safety % and a high degree of operating leverage; this means it is likely that Penco has a high reliance on fixed costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A high degree of operating leverage indicates that a company has a significant proportion of fixed costs in its cost structure, leading to a higher reliance on fixed costs.

Penco Industries Has a Small Margin of Safety % and a High