Operating leverage-margin of safety-cost behavior

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Describe how a 3 percent decline in sales at Home Depot could cause the 21 percent decline in profits. What accounting concept was involved, how were the many major types of costs incurred by Home Depot likely affected by decline in its sales, and the effect of the decline in sales on Home Depot's margin of safety?

Reference no: EM1348133

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Operating leverage-margin of safety-cost behavior : Describe how a 3 percent decline in sales at Home Depot could cause the 21 percent decline in profits. What accounting concept was involved, how were the many major types of costs incurred by Home Depot likely affected by decline in its sales

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