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    Operating leverage

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    How do fixed costs create operating leverage?

    © BrainMass Inc. brainmass.com May 24, 2023, 1:28 pm ad1c9bdddf

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    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.