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the impact of fixed and variable operating costs on the firm’s breakeven point and its operating leverage because these costs will have a major impact on the firm’s risk and return

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the impact of fixed and variable operating costs on the firm’s breakeven point and its operating leverage because these costs will have a major impact on the firm’s risk and return. Like corporations, you routinely incur debt, using both credit cards for short-term needs and negotiated long-term loans. When you borrow over the long term, you experience the benefits and consequences of leverage. Also, the level of your outstanding debt relative to net worth is conceptually the same as a firm’s capital structure. It reflects your financial risk and affects the availability and cost of borrowing. - Explain with Examples.