What factors cause difference in use of financial leverage

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Problem 1: Different companies operate on different cost structures, some with large amount of fixed costs. What are some industries that have a high operating leverage?

Problem 2: What factors would cause a difference in the use of financial leverage for a utility company and an automobile company?

Problem 3: In low operating leverage companies, the majority of costs are variable and fluctuate based on sales volume. why is this so?

Reference no: EM132663856

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