High Operating Leverage Represents Increased Risk Associated with Relatively

question 22

Multiple Choice

High operating leverage represents increased risk associated with relatively:

• A) High variable costs in the firm's cost structure.
• B) High fixed cost in the firm's cost structure.
• C) High sales revenue combined with high variable costs.
• D) High asset turnover.
• E) High levels of unit-level (i.e., volume-related) costs.

---

Definitions:

Proembryo

An early stage in the development of an embryo, particularly in plants, following fertilization and prior to the formation of recognizable structures.

Basal Cell

A type of cell found at the base of the epidermis and hair follicles, involved in the production of new skin cells.

Drupe

A type of fruit with thin skin and a central stone containing the seed, for example, peaches, plums, and cherries.

Olive

A small, oval fruit with a hard pit and oily flesh, primarily grown in the Mediterranean region, used for its oil and as a food item.