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    Principles of Managerial Finance
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    Exam 13: Leverage and Capital Structure
  5. Question
    With the Existence of Fixed Operating Costs, a Decrease in Sales
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With the Existence of Fixed Operating Costs, a Decrease in Sales

Question 201

Question 201

Multiple Choice

With the existence of fixed operating costs, a decrease in sales will result in ________ in EBIT.


A) a proportional increase
B) an equal increase
C) a less than proportional decrease
D) a more than proportional decrease

Correct Answer:

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