Operating leverage is driven by:

date:2026-07-02 12:04:19 author:admin browse: time View comments Add Collection

Operating leverage is driven by:

Operating leverage is driven by:

A. Fixed operating cost proportion in cost structure

B. Fixed financial interest expense

C. Variable raw material unit price

D. Income tax statutory rate

Answer: A

Rationale: High fixed operating cost magnifies EBIT volatility against sales fluctuation = high operating leverage.