Multiple Choice
A company with a high operating leverage will experience
A) a large percentage change in operating income as a result of a small percentage change in sales.
B) a small percentage change in operating income as a result of a small percentage change in sales.
C) the same percentage change in operating income as a result of a percentage change in sales.
D) a small percentage change in operating income as a result of a large percentage change in sales.
Correct Answer:
Verified
Correct Answer:
Verified
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