Which of the Following Statements Is CORRECT?As a Firm Increases

Multiple Choice

Which of the following statements is CORRECT?As a firm increases the operating leverage used to produce a given quantity of output, this will

A) normally lead to a decrease in its business risk.
B) normally lead to a decrease in the standard deviation of its expected ebit.
C) normally lead to a decrease in the variability of its expected eps.
D) normally lead to a reduction in its fixed assets turnover ratio.
E) normally lead to an increase in its fixed assets turnover ratio.