This page relabes to operating leverage $-$ fill out the two charts below to answer the questions

Below are two firws in the same industry $-$ Firm A hires more people when the production requirements increase and Firm B imvested in auforwated equipment so they do not reed to hire as many people when their production re$$urements increase

Selling price per unit

Variable cost per unit

Flued costs

A$.$ Labor Intensive

$$12\mathrm{.}00$

$$8\mathrm{.}00$

$$200,000$

B$.$ Capital Intensive

$$12\mathrm{.}00$

$$5\mathrm{.}00$

$$300,000$

Show the profitablity for firm A This page relabes to operating leverage $-$ fill out the two charts below to answer the questions

Below are two firws in the same industry $-$ Firm A hires more people when the production requirements increase and Firm B imvested in auforwated equipment so they do not reed to hire as many people when their production re$$urements increase

Selling price per unit

Variable cost per unit

Flued costs

A$.$ Labor Intensive

$$12\mathrm{.}00$

$$8\mathrm{.}00$

$$200,000$

B$.$ Capital Intensive

$$12\mathrm{.}00$

$$5\mathrm{.}00$

$$300,000$

Show the profitablity for firm A