All else being equal, a company with a low operating leverage will have

Question

Quizplus · Accepted Answer

Operating leverage is the degree to which a company uses fixed costs versus variable costs in its production process. A company with low operating leverage would have relatively low fixed costs and relatively high variable costs, which means it is less sensitive to changes in sales volume compared to a company with high operating leverage. Therefore, choice B is the correct answer.

All Else Being Equal, a Company with a Low Operating