The closer a firm is to its break-even point, the lower the degree of operating leverage will be.

Name: The closer a firm is to its break-even point, the lower the degree of operating leverage will be.
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The closer a firm is to its break-even point, the higher the degree of operating leverage will be. This is because fixed costs represent a larger proportion of total costs at or near the break-even point, causing a relatively small change in sales volume to have a big impact on the firm's profitability.

The Closer a Firm Is to Its Break-Even Point, the Lower