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Exam Question

Operating leverage may be defined as

  • 1) the degree to which debt is used in financing the firm
  • 2) the difference between price and variable costs
  • 3) the extent to which capital assets and fixed costs are utilized
  • 4) the difference between fixed costs and the contribution margin

View Answer

Answer 3) the extent to which capital assets and fixed costs are utilized

Practice set and Exam Quiz

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