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Which of the following statements a) , b) or c) is false?
Operating Leverage
A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed costs in a company's cost structure.
Breakeven Point
is the level of production or sales at which total revenues equal total costs, resulting in neither profit nor loss.
Business Risk
Variation in a company’s financial performance caused by changes in business conditions.
Operating Leverage
A financial ratio that measures the degree to which a firm or project can increase operating income by increasing revenue, highlighting the impact of fixed costs on profits.
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