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:

Char

Char is a data type in C and C++ programming languages that is used to store single characters, usually represented in a single byte.

Pointers

Variables that store memory addresses, typically of other variables, enabling indirect manipulation of data in programming.

Integer Array

An array data structure that holds multiple values of integer type, with each element accessible by its index.