Assumed data for Samsung and Apple follow. Required 1. Compute the degree of operating leverage for each
Question:
Assumed data for Samsung and Apple follow.
Required
1. Compute the degree of operating leverage for each company.
2. Based on the degree of operating leverage, which company’s income will increase more from an increase in unit sales?
Transcribed Image Text:
$ millions Samsung Apple Contribution margin ..... $74,612 $138,140 Income.... 18,653 55,256
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