Firm has degree of operating leverage

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Firm A has a Degree of Operating Leverage (DOL) of 2.0. Firm B has a DOL of 3.0. In comparing Firm A to Firm B, you would expect that Firm A would have ______ fixed costs relative to its total cost structure than Firm B and/but a ______ percentage change in operating cash flow resulting from changes in sea volumes than Firm B. a) lower, smaller B) higher, smaller C) lower, larger D) higher, larger E) similar, less

Reference no: EM131503227

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