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If company A has a higher degree of operating leverage than company B, then: ...

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Accounting

If company A has a higher degree of operating leverage than company B, then:
a. company A's profits are more sensitive to percentage changes in sales
b. company A's variable expenses are high
c. company A is more profitable
d. company A is less risky
A company has provided the following data:
If the sales volume decreases by 20%, the variable cost per unit increases by 10%%, and all other factors remain
the same, net income will:
a. increase by $20,625
b. decrease by $31,875
c. decrease by $3,125
d. decrease by $24,000
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