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How does operating leverage affect business risk

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Reference no: EM132803268

1. How does operating leverage affect business risk?

2. Explain this statement: "Using leverage has both good and bad effects." A firm has fixed operating costs of P100,000 and variable costs of P4 per unit. If it sells the product for P6 per unit, what is the break-even quantity?

Reference no: EM132803268

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