As additional equipment is purchased, the level of ﬁxed costs tends to _____ and the degree of operating leverage tends to _____
A) Remain constant; remain constant.
B) Rise; rise.
C) Rise; fall.
D) Fall; rise.
E) Fall; fall.

Question

Quizplus · Accepted Answer

The Answer of As additional equipment is purchased, the level of ﬁxed costs tends to _____ and the degree of operating leverage tends to _____
A) Remain constant; remain constant.
B) Rise; rise.
C) Rise; fall.
D) Fall; rise.
E) Fall; fall.

As Additional Equipment Is Purchased, the Level of ﬁXed Costs