What will happen to their profitability

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Question: If two businesses are operating in excess of their break even sales level and both increase by 15%, what will happen to their profitability? a) The business with the lower operating leverage will increase its profits by a greater amount than will the business with the higher operating leverage b) the profits for both businesses will increase at the same rate (approximately 15%) because both are operating in excess of their break-even sales level c) The business with the higher operating leverage will increase its profits by a greater amount than will the business with the lower operating leverage

Reference no: EM133609363

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