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Both Apple and Google sell electronic devices, and each of these companies has a different product mix. Apple Google Average selling price per unit sold

Both Apple and Google sell electronic devices, and each of these companies has a different product mix.

Apple

Google

Average selling price per unit sold

$550 per unit

$470 per unit

Average variable cost per unit sold

$250 per unit

$270 per unit

Total fixed costs ($ in millions)

$ 36,000

$ 10,000

If unit sales were to decline, which company would experience the larger decline in operating profit? Explain. Please include in your answer an explanation of how degree of operating leverage works.

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