Firm with high operating leverage

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Reference no: EM131211132

Which of the following is not true for a firm with high operating leverage?

a. It has a relatively high amount of fixed costs.

b. It is generally thought to be riskier than a company with lower operating leverage.

c. It has a larger contribution margin ratio than similar firms.

d. If sales increase, its profits will increase slower than a company with lower operating leverage.

Reference no: EM131211132

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