Question: Problem 1 . Profit - leverage Effect A firm has an operating margin of 7 . 6 % ( a ) The profit - leverage
Problem Profitleverage Effect
A firm has an operating margin of
a The profitleverage effect
b A $ 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 $ sales
increase.
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