Question: What does the following formula calculate? Contribution margin Contribution margin - Fixed costs a. Profit to Volume Ratio b. operating leverage combined leverage d. financial
What does the following formula calculate? Contribution margin Contribution margin - Fixed costs a. Profit to Volume Ratio b. operating leverage combined leverage d. financial leverage if company A increases its revenue from 51.500 to $1,650 and profit for the year from $400 to $470, while company B increases its revenue from $600 to $660 and profit for the year from $35 to $50. what impact will the results have on the companies operating leverage? a neither company demonstrates operating leverage b. company A has a more favourable operating leverage than company B c. both companies have the same operating leverage d. company has a more favourable operating leverage than company A
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