What will the change do to the operating leverage factor

Reference no: EM132213289

Question: If a firm pays no income taxes and is planning to increase its selling price and the sales volume in units does not change, what will be the effect on the operating leverage factor? Explain.

What if the firm that pays no income taxes is planning to increase total fixed manufacturing costs and decrease variable manufacturing costs per unit. At the present volume of production, the total manufacturing costs will be unchanged. What will this change do to the operating leverage factor? Explain.

Reference no: EM132213289

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