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    Operating leverage

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    How do fixed costs create operating leverage?

    © BrainMass Inc. brainmass.com June 3, 2020, 5:21 pm ad1c9bdddf
    https://brainmass.com/business/accounting/23090

    Solution Preview

    Operating leverage is concerned with the relative mix of fixed costs and variable costs in an organization. It is sometimes possible to trade off fixed costs for variable costs. As the variable costs ...

    Solution Summary

    Operating leverage is correlated with fixed costs.

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