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Assume that two companies, Brake, Inc. and Carbo, Inc., have the following operating results:
Brake, Inc.
Carbo, Inc.
Sales
$300,000
Variable Costs
60,000
180,000
Fixed Costs
210,000
90,000
Operating Income
$30,000
Required:
Using the list from the back of your textbook, for the following 6 diagnostic financial performance categories, decide which ratios (2-3 for each diagnostic category listed) you wish to use.
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