If Firm A has a greater variability in operating earnings than Firm B , which firm has the lower DOL?
A) Firm X
B) Firm Y
C) DOL is equal for both.
D) There is no way to tell from the information given.
Correct Answer:
Verified
Q8: If sales in 1990 were $100,000 and
Q9: Total variable costs are $15,000, sales $50,000,
Q10: Whenever fixed costs are greater than zero,
Q11: Operating leverage has the effect of triggering:
A)
Q12: You are provided with the following information:
Q14: The total degree of business risk that
Q15: Degree of financial leverage can best be
Q16: Which of the following statements best describes
Q17: Your firm has a DOL of 1.25
Q18: ![]()
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