Question
Companies Crow's Nest and King's Landing are in the same industry and are identical except for their cost structure. At a volume of 50,000 units,
Companies Crow's Nest and King's Landing are in the same industry and are identical except for their cost structure. At a volume of 50,000 units, the companies have equal net incomes. At 60,000 units, Company Crow Nest's net income would be substantially lower than King's Landing's. Based on this information: Group of answer choices
Crow's Nest's cost structure has more fixed costs than King's Landing
King's Landing cost structure has higher fixed costs than Crow's Nest
At a volume of 50,000 units, Crow's Nest's magnitude of operating leverage is higher than King's Landing
King's Landing cost structure has more variable costs than Crow's Nest
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