Assertion (A): The impact of change in sales on operating income is measured by the degree of operating leverage.
Reason (R): The degree of operating leverage is higher when the fixed cost is high.
(A) is incorrect, but (R) is correct
(A) and (R) are correct but (R) is not the correct explanation of (A)
(A) is correct, but (R) is incorrect
(A) and (R) are correct and (R) is the correct explanation of (A)
Boost your performance with adaptive practice tests
Practice every concept in the syllabus
Compare your speed and accuracy with your peers
Download the app and practice on the go