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What is the meaning of operating leverage

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Reference no: EM132814184

Question 1: What is the meaning of operating leverage?

Question 2: What is the meaning of break-even point?

Question 3: In response to a request from your immediate supervisor, you have prepared a CVP graph portraying the cost and revenue characteristics of your company's product and operations. Explain how the lines on the graph and the break-even point would change if

(a) the selling price per unit decreased

(b) fixed cost increased throughout the entire range of activity portrayed on the graph, and

(c) variable cost per unit increased.

Reference no: EM132814184

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