A hotel would be an example of a company with low operating leverage.

Name: A hotel would be an example of a company with low operating leverage.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Operating leverage refers to the proportion of fixed costs in a company's cost structure. A hotel typically has high operating leverage due to significant fixed costs such as property maintenance, utilities, and staff salaries, which do not vary directly with the level of business activity.

A Hotel Would Be an Example of a Company with Low