Solution-Compute income for each company

Compute income for each company

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Reference no: EM133122803

Question - Both Apple and Google sell electronic devices, and each of these companies has a different product mix. Assume the following data are available for both companies.

($ millions)	Apple	Google
Sales	$260,174	$161,857
Variable costs	122,034	86,302
Fixed costs	82,884	41,212

Required -

1. Compute income for each company.

2. Compute the degree of operating leverage for each company.

3. If unit sales decline, which company would experience the larger decline in income?

Reference no: EM133122803

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Compute income for each company

Reference no: EM133122803

Reference no: EM133122803

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