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Which company has the better operating leverage

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Reference no: EM132536548

COMPANY A: sells it merchandise at $50 per unit. it has variable costs of $45 per unit and fixed costs of $60,000.

COMPANY B: sells it merchandise at $50 per unit. it has variable costs of $25 per unit and fixed costs of $100,000.

Question 1: Based on this information, which company has the better operating leverage

Reference no: EM132536548

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