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Firm A generates $1M in revenue, has $500,000 fixed costs, and $300,000 variable costs. Firm B generates $1M in revenue, has $600,000 fixed costs and$200,000

Firm A generates $1M in revenue, has $500,000 fixed costs, and $300,000 variable costs.

Firm B generates $1M in revenue, has $600,000 fixed costs and$200,000 variable costs.

Indicate which firm has the highest operating leverage.

THE CHOICES ARE :-

Both firms have the same operating leverage.

Firm B

Firm A

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