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 -

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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!