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Which one of the following statements is FALSE regarding operating leverage?

a) A company that has a high DOL has a high business risk.


b) DOL is a measure of sensitivity of a firm's EBIT to a change in sales.


c)The higher the DOL, the closer the company to its break-even point.


d) Operating leverage mainly focus on the use of variable operating costs by a company.

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Subject: Business, Finance

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