Question: A high proportion of Company As total costs are variable with respect to units sold; a high proportion of Company Bs total costs are fixed
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.
Step by Step Solution
★★★★★
3.29 Rating (173 Votes )
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Company B is likely to have a higher degree of operating leverage DOL Expla... View full answer
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Document Format (1 attachment)
115-B-M-A-C-B (554).docx
120 KBs Word File
