Operating leverage increases as the proportion of __________________ increases. ​

A) Variable costs​
B) Fixed costs​
C) Assets​
D) Equity​

Operating Leverage

An indicator of how increases in revenue lead to expansions in operating income, showing the level of fixed expenses within a company's cost framework.

Fixed Costs

Costs that do not change with the level of goods or services produced by a business.

Variable Costs

Expenses that change in proportion to the activity of a business, such as the cost of raw materials or production costs.