A cost structure which relies more heavily on fixed costs makes the company:
Ahave a lower break-even point.
Bhigher degree of operating leverage and more sensitive to changes in sales revenue.
Ceither more or less sensitive to changes in sales revenue, depending on other factors.
Dlower degree of operating leverage and less sensitive to changes in sales revenue.
Ahave a lower break-even point.
Bhigher degree of operating leverage and more sensitive to changes in sales revenue.
Ceither more or less sensitive to changes in sales revenue, depending on other factors.
Dlower degree of operating leverage and less sensitive to changes in sales revenue.