Whenever the percentage change in EBIT due to percentage change in sales is lower than the percentage change in sales, operating leverage exists TRUE FALSE
Whenever the percentage change in EBIT due to percentage change in sales is lower than the percentage change in sales, operating leverage exists TRUE FALSE
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6MCQ: The use of fixed costs to extract higher percentage changes in profits as sales activity changes...
Related questions
Question
![Whenever the percentage change
in EBIT due to percentage change
in sales is lower than the
percentage change in sales,
operating leverage exists
TRUE
FALSE](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a4bee97-b69e-4c0c-bd3b-be03d7646ceb%2Fd3568b45-2981-40ca-8e0d-24f81d9f1a77%2F358a04j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Whenever the percentage change
in EBIT due to percentage change
in sales is lower than the
percentage change in sales,
operating leverage exists
TRUE
FALSE
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