Georgia inc and florida company both sell the same kinds of

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Georgia, Inc. and Florida Company both sell the same kinds of products. Sales and expenses for each company are:

	Georgia, Inc.	Florida Company

Sales	$90,000	$90,000
Variable costs	25,000	55,000
Fixed costs	55,000	25,000
Profits	10,000	10,000

Which of these companies have the highest operating leverage? Which of these companies has more financial risks?

Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. For problems, be sure to answer all questions and provide all requested information.

Reference no: EM13389027

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