Q.
1
(i) The greater a firms degree of operating leverage, the more its EBIT will vary with respect to fluctuations in sales.
(ii) The greater a firms degree of operating leverage, the less its EBIT will vary with fluctuations in sales.
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A
Both correct
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B
Both Incorrect
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C
(i) correct, (ii) incorrect
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D
(i) incorrect, (ii) correct