A high proportion of Company As total costs are variable with respect to units sold; a high

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A high proportion of Company A’s total costs are variable with respect to units sold; a high proportion of Company B’s total costs are fixed with respect to units sold. Which company is likely to have a higher degree of operating leverage (DOL)? Explain.

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Managerial Accounting

ISBN: 978-0073379586

2010 Edition

Authors: John J. Wild, Ken W. Shaw

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