Question

which of the following statements is not true about operating leverage? a. the higher a firm's operating leverage, the higher its level of business risk. b. a high degree of operating leverage implies that a small change in sales results in a large change in return on invested capital. c. a firm's operating leverage significantly influences its capital structure decisions. d. the lower the percentage of total costs that are fixed, the higher degree of operating leverage a firm will have. e. projects that utilize alternative production methods often result in different degrees of operating leverage.

Answer 1

d. The lower the percentage of total costs that are fixed, the higher degree of operating leverage a firm will have.

Step-by-step explanation:

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