Question: Exercise 2: From the following selected operating data, determine the degree of operating leverage. Which company has the greater amount of business risk? Why? Variable

Exercise 2: From the following selected operating data, determine the degree of operating leverage. Which company has the greater amount of business risk? Why? Variable expenses as a percentage of sales are 50% for company A and 25% for company B. Sales Fixed costs Company A Rs. 25,00,000 7,50,000 Company B Rs. 30,00,000 15,00,000

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