The closer the base sales level used is to the operating breakeven point, the smaller the operating leverage.
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Q72: Financial leverage results from the presence of
Q73: The base level of sales must be
Q74: Whenever the percentage change in earnings before
Q75: The total leverage measures the combined effect
Q76: Whenever the percentage change in earnings per
Q78: Comparison of the degree of operating leverage
Q79: The degree of operating leverage will increase
Q80: Total leverage exists whenever the percentage change
Q81: _ is the potential use of fixed
Q82: With the existence of fixed operating costs,
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