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0. Alpha and Beta both operate in the automobile sector with the same degree of operating leverage. Alpha has a capital structure of 40% debt and 60% equity, while Beta is financed completely by equity. Which of the following statements is most accurate? Compared to Beta, Alpha has:
the same sensitivity of operating income to changes in unit sales.
the same sensitivity of net income to changes in operating income.
a lower sensitivity of net income to changes in unit sales.
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