Question:
What is the operating leverage?
Author: Hjalmer PedersenAnswer:
Operating leverage measures the relationship between a company’s variable and fixed expenses. It is greatest in organisations that have high fixed expenses and low per unit variable expenses.
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![Operating leverage measures the relationship between a company’s variable and fixed expenses. It is greatest in organisations that have high fixed expenses and low per unit variable expenses.](https://markdown.memory.com/eq_uploads/1194571/question_image_d482070e-c192-457c-8cde-41d9ec570a2a.jpg)
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