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47. If Company X has lower business risk than Company Y, what impact will a 5% increase in sales have on the operating income of
47. If Company X has lower business risk than Company Y, what impact
will a 5% increase in sales have on the operating income of both
companies? Company X will have lower risk and company Y will have higher risk
80. What is the effect on EBIT of a small decrease in sales on a company that has a high degree of business risk? They would have a large decrease in EBIT
Can someone please explain how these answers were received and explain how I can solve problems like this in the future? Thank you.
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