Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. which of the following statements about operating

Which of the following statements about operating leverage is/are likely to be true? 1. A...

80.2K

Verified Solution

Question

Accounting

image

Which of the following statements about operating leverage is/are likely to be true? 1. A firm with low operating leverage faces lower risk compared to a firm with higher operating leverage, all else being equal. 2. A firm should always try to minimise its operating leverage, all else being equal. 3. A manufacturing firm that uses more automation (and less human labour) would have a lower operating leverage compared to a firm that uses more human labour (and less automation), all else being equal. Statement 1 only Statement 2 only Statement 3 only Statements 1 and 2 only Statements 1, 2 and 3

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

In two different experiments exactly 5 grams of fuel burns (combusts). The first experiment is under...

Chemistry
Q

Exercise 8-16 (Algo) Direct Materials and Direct Labor Budgets [LO8-4, LO8-5] The production department of Zan Corporation...

Accounting
Q

12 What game must Wade defeat to pass the second gate How was it changed...

Biology
Q

Threshold wavelength of a metal surface is 5 10 7 m When it is illuminated...

Physics
Q

Problem 2 5 points A spherical tank with a radius of 15 feet is full...

Geometry
Q

3 Prove the following trigonometric identities A 4 marks 1 cscx cotx secx tan x

Basic Math
Q

8. The stockholders' equity section of the balance sheet for Scuba Gear Corporation...

Accounting
Q

Kingbird Company manufactures desks. Most of the company's desks are standard models and are sold...

Accounting
Q

Tombro Industries is in the process of automating one of its plants and developing a...

Accounting
Q

13) The annual report, including GAAP financial statements, which registered companies must file with the...

Accounting
Q

1. Assume that a company has two cost driversnumber of courses and number of students....

Accounting
Q

You will create a portfolio that invests 60% of your money in Hamburger Hut and...

Finance