80.2K
Verified Solution
Link Copied!
Which of the following statement is true?
-Operating leverage refers to a company's ability to increase its sales volume while decreasing its total fixed cost.
-A company that has only variable cost cannot benefit from operating leverage.
-To benefit from operating leverage a company must have both fixed and variable costs.
-Operating leverage may help a company increase its profitability but it cannot decrease profitability.
Answer & Explanation
Solved by verified expert
