Question: Problem 1 . Profit - leverage Effect A firm has an operating margin of 7 . 6 % ( a ) The profit - leverage

Problem 1. Profit-leverage Effect
A firm has an operating margin of 7.6%
(a) The profit-leverage effect =
(b) A $38,000 dollar savings in logistics costs has the same impact on profit as
$, ales increase.
(c) $
logistics cost saving can achieve the same profit impact as a $100,000 sales
increase.
 Problem 1. Profit-leverage Effect A firm has an operating margin of

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