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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Whichiscorrect?Increaseordecrease?Asafirmincreasestheoperatingleverageusedtoproduceagivenquantityofo

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.

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