Question: please Show Work and reasoning also. Cost Behavior, Operating Leverage, and Pr are generally operated under one of the following formats: combination food and drug
please Show Work and reasoning also.


Cost Behavior, Operating Leverage, and Pr are generally operated under one of the following formats: combination food and drug stores ("combo stores";: multi-department stores; marketplace stores; or price impact warehouses 2014 Kroger Co. Revenue Operating earnings 2013 $108,465 $98,375 3,137 2,725 Required a. Determine which company appears to have the higher operating leverage. b. Write a paragraph or two explaining why the company you identified in Requirement a might be expected to have the higher operating leverage. If revenues for both companies increased by 5 percent, which company do you think would likely experience the greater percentage increase in operating earnings? Explain your answer. c
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