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ATech has fixed costs of $14 million and profits of $10 million. Its competitor, ZTech, is roughly the same size and this year earned the

ATech has fixed costs of $14 million and profits of $10 million. Its competitor, ZTech, is roughly the same size and this year earned the same profits, $10 million. But it operates with higher fixed costs of $12 million and lower variable costs.

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What is the degree of operating leverage (DOL) for each company? (Defined here as 1 + Fixed costs/Profit.) (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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