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Both Apple and Google sell electronic devices, and each of these companies has a different product mix. Assume the following data are available for both
Both Apple and Google sell electronic devices, and each of these companies has a different product mix. Assume the following data are available for both companles. (5 millions) Sales Variable costs Fixed costs Apple $ 269, 174 122,034 82,884 Google $ 161,857 86,302 41,212 Required: 1. Compute Income for each company. 2. Compute the degree of operating leverage for each company. 3. If unit sales decline, which company would experience the larger decline in Income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute income for each company. (Enter your answers in million of dollars.) Apple Google Income 2. Compute the degree of operating leverage for each company. 3. If unit sales decline, which company would experience the larger decline in Income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the degree of operating leverage for each company. (Round your answer to 1 decimal place.) Apple Google Degree of operating leverage 3. If unit sales decline, which company would experience the larger decline in Income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If unit sales decline, which company would experience the larger decline in income? If unit sales decline. will experience a larger decline in income.
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