For Japanese firms that have high levels of operating and financial leverage, maintaining sales volume is of critical importance even at the cost of price.

Question

Quizplus · Accepted Answer

Japanese firms that have high levels of operating and financial leverage are willing to maintain sales volume even if they have to lower prices. This is because a reduction in sales volume would lead to a decrease in revenue and could potentially harm the firm's ability to pay its fixed costs, including debt payments. Therefore, maintaining sales volume is crucial for these firms.

For Japanese Firms That Have High Levels of Operating and Financial