Operating leverage is not favourable when ………
A)Fixed costs are more than contribution
B)Fixed cost is less than variable cost
C)Fixed cost and variable cost are equal
D)None of the above cases

Question

Quizplus · Accepted Answer

Operating leverage is not favourable when fixed costs are more than the contribution because it indicates that the business is not generating enough revenue to cover its fixed costs, leading to potential losses.

Operating Leverage Is Not Favourable When ………