The lower the use of fixed costs relative to variable costs within a company, the greater the operating leverage.

Name: The lower the use of fixed costs relative to variable costs within a company, the greater the operating leverage.
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Quizplus · Accepted Answer

Operating leverage increases with the use of fixed costs relative to variable costs, as fixed costs do not change with the level of output, magnifying the effect of changes in sales on profits.

The Lower the Use of Fixed Costs Relative to Variable