Which is correct?Increase or decrease?As a firm increases the operating leverage used to produce a given quantity of output,this will normally lead to an increase or decrease in its fixed assets turnover ratio
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![Which is correct?Increase or decrease?As a firm increases the operating leverage used to produce a given quantity of output,this will normally lead to an increase or decrease in its fixed assets turnover ratio](/uploads/image/z/12816209-65-9.jpg?t=Which+is+correct%3FIncrease+or+decrease%3FAs+a+firm+increases+the+operating+leverage+used+to+produce+a+given+quantity+of+output%2Cthis+will+normally+lead+to+an+increase+or+decrease+in+its+fixed+assets+turnover+ratio)
Which is correct?Increase or decrease?As a firm increases the operating leverage used to produce a given quantity of output,this will normally lead to an increase or decrease in its fixed assets turnover ratio
Which is correct?Increase or decrease?
As a firm increases the operating leverage used to produce a given quantity of output,this will normally lead to an increase or decrease in its fixed assets turnover ratio
Which is correct?Increase or decrease?As a firm increases the operating leverage used to produce a given quantity of output,this will normally lead to an increase or decrease in its fixed assets turnover ratio
fixed assets turnover ratio is equal to sales/average net fixed asset,
operating leverage =fixed assets/total assets,when this ratio increases,it means the the proportion of FC increases,so it leads to decrease the fixed assets turnover.