Operating leverage measures
A) the effect of variable costs on the responsiveness of the firm's earnings before interest and taxes to changes in the level of sales.
B) the effect of fixed operating costs on the responsiveness of the firm's earnings before interest and taxes to changes in the level of gross income.
C) the effect of fixed operating costs on the responsiveness of the firm's earnings before interest and taxes to changes in the level of sales.
D) none of the above.
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