Firms with High Operating Leverage Tend to Have

question 48

Multiple Choice

Firms with high operating leverage tend to have:

• A) High asset turnover and high return on sales.
• B) Low asset turnover and low return on sales.
• C) Low asset turnover and high return on sales.
• D) High asset turnover and low return on sales.
• E) Decreased levels of short-term fixed costs.