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Assume that two companies, Brake, Inc. and Carbo, Inc., have the following operating results: Brake, Inc. Carbo, Inc.Sales$ 3 0 0 , 0 0 0
Assume that two companies, Brake, Inc. and Carbo, Inc., have the following operating results: Brake, Inc. Carbo, Inc.Sales$$Variable CostsFixed CostsOperating Income$$Tasks:Calculate the contribution margin and breakeven point for both companies.Compare the two companies. What conclusions could you make regarding the use of operating leverage employed by the two firms?What recommendations would you make to the two companies and why?
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