Multiple Choice
The concept of operating leverage refers to which of the following?
A) Operating income changes proportionately more than revenues for any given change in activity level.
B) Operating income changes proportionately less than revenues for any given change in activity level.
C) Operating income changes proportionately more than income for any given change in activity level.
D) Operating income changes proportionately less than income for any given change in activity level.
Correct Answer:
Verified
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