Question: From the following selected operating data, determine the operating leverage. Which company has the greater amount of business risk? Company A Company B (Rials) (Rials)

 From the following selected operating data, determine the operating leverage. Which

From the following selected operating data, determine the operating leverage. Which company has the greater amount of business risk? Company A Company B (Rials) (Rials) Sales 10,00,000 20,00,000 Fixed cost 10 % of sales 5% of sales Variable expenses as a percentage of sales are 40 percent for Company A and 25 percent for Company B. Select one: a. Company A= 1.2, Company B =1.07 Company A has greater business risk O b. Company A= 1.02, Company B =1.07 Company B has greater business risk O c. Company A= 1.2, Company B =1.07 Company B has greater business risk O d. Company A= 1.02, Company B =1.07 Company A has greater business risk

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