Operating leverage deals primarily with the relationship between:

Name: Operating leverage deals primarily with the relationship between:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Operating leverage deals primarily with the relationship between fixed costs and variable costs. It shows how changes in sales revenue can affect a company's profits due to the fixed costs they incur. A high degree of fixed costs relative to variable costs leads to higher operating leverage, where small changes in sales can have a significant impact on net income.

Operating Leverage Deals Primarily with the Relationship Between