When a company uses increased fixed cost for production, this is an example of what type of leverage.

When a company uses increased fixed cost for production, this is an example of what type of leverage. Correct Answer operating leverage

When a company uses increased fixed cost for production, this is an example of operating leverage. Operating leverage is a cost-accounting formula that measures the degree to which a firm or project can increase operating income by increasing revenue. A business that generates sales with a high gross margin and low variable costs has high operating leverage.
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