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Post an explanation of the meaning of the following statement: "Both operating risk and profit potential for...

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Finance

Post an explanation of the meaning of the followingstatement:

"Both operating risk and profit potential for anorganization .... increase with an increase in thefixed-to-variable costs proportions."

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3.6 Ratings (361 Votes)
The statement talks about operating leverage and how the use of operating leverage impacts operating risks and profit potential for a company Operating leverage is the degree to which a company incurs a    See Answer
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Transcribed Image Text

Post an explanation of the meaning of the followingstatement:"Both operating risk and profit potential for anorganization .... increase with an increase in thefixed-to-variable costs proportions."

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