The higher the degree of operating leverage, the lower the break-even point, regardless of how it's measured.

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joshua Hefferan · Accepted Answer

Final Answer : False, Explanation :  The degree of operating leverage does not directly determine the break-even point; it measures how a company's operating income changes with sales volume. A higher degree of operating leverage indicates a company's earnings are more sensitive to changes in sales, but the break-even point is determined by fixed costs, variable costs, and sales price, not the degree of operating leverage.

The higher the degree of operating leverage, the lower the break-even point, regardless of how it's measured.

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