WhWhich one of the following characteristics best describes a project that has a

Question

WhWhich  one of the following characteristics best describes a project that has a low   degree of            popoperating leverage?

Ans

Sele:

1. an     OCF that is highly sensitive to the sales quantity

Corr

                                      OR

  2. high     variable costs relative to the fixed costs

  

WhWhich  one of the following characteristics best describes a project that has a low   degree of            popoperating leverage?

  

Ans

          

Sele:

         

    

1. an     OCF that is highly sensitive to the sales quantity

         

Corr

         

                                      OR

    

  2. high     variable costs relative to the fixed costs

     odo




  

Explanation / Answer

2. high variable costs relative to the fixed costs

As Even a major amount of sales would not effect operating leverage much

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