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In a company with low operating leverage
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Part 1
A.
companies follow the strategy of replacing variable costs with fixed costs.
B.
less risk is assumed than in a highly leveraged firm.
C.
fixed costs are high and variable costs are low.
D.
small increases in sales lead to large increases in operating income.
E.
there is a higher possibility of net loss than a higherleveraged firm.
In a company with low operating leverage *** O A. companies follow the strategy of replacing variable costs with fixed costs. B. less risk is assumed than in a highly leveraged firm. C. fixed costs are high and variable costs are low. D. small increases in sales lead to large increases in operating income. OE. there is a higher possibility of net loss than a higher leveraged firm.