When a Firm Has Fixed Operating Costs, Operating Leverage Is

question 182

True/False

When a firm has fixed operating costs, operating leverage is present. In that case, an increase in sales results in a more-than-proportional increase in EBIT, and a decrease in sales results in a more-than-proportional decrease in EBIT.

---

Definitions:

Classes

Categories or groups into which data or objects are organized based on shared characteristics or attributes.

Histograms

A graphical representation that organizes a group of data points into user-specified ranges.

Leaf

In the context of a tree data structure, a leaf is a node that has no children.

Stem

In the context of data visualization, the stem represents the main part of a stem-and-leaf plot, displaying digits for significant value while the leaf displays less significant digits.