A high DOL means
A)there are high labor costs.
B)there is high debt.
C)there is a large amount of equity.
D)there are high fixed costs.

Name: A high DOL means A)there are high labor costs. B)there is high debt. C)there is a large amount of equity. D)there are high fixed costs.
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Question

Quizplus · Accepted Answer

A high Degree of Operating Leverage (DOL) indicates that a company has a high proportion of fixed costs relative to variable costs, meaning that changes in sales volume will have a more significant impact on operating income.

A High DOL Means