Answered: Financial leverage indicates -

Business

Finance

Financial leverage indicates -

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10MC: When sales price increases and all other variables are held constant, the break-even point will A....

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Question

Financial leverage indicates -

O a. The tendency of sales to vary disproportionately with fixed cost.

O b.

The tendency of profit before tax (PBT) to vary disproportionately with operating profit (EBIT).

OC.

The tendency of profit before tax (PBT) to vary disproportionately with sales.

Od. The tendency of profit after tax (PAT) to vary disproportionately with fixed cost.

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