The implications of operating leverage for the financial manager. Introduction: Operating leverage is ameasure that indicates the sensitivity on the fixed cost of a project. It interprets that a company with high operating leverage, points out higher fixed costs and vice versa.

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Chapter 11.5, Problem 11.5CCQ

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To discuss: The implications of operating leverage for the financial manager.

Introduction:

Operating leverage is ameasure that indicates the sensitivity on the fixed cost of a project. It interprets that a company with high operating leverage, points out higher fixed costs and vice versa.

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