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Income statements for two different companies in the same sector of industry are as follows Company X Company Y Sales $ 625,000 $ 625,000 Variable
Income statements for two different companies in the same sector of industry are as follows Company X Company Y Sales $ 625,000 $ 625,000 Variable costs 500.000 312,500 Contribution margin $ 125,000 $ 312,500 Fixed costs 62,500 250,000 Operating income 62,500 $ 62,500 Compute the operating leverage for each company. Compute the margin of safety for each company. Suppose both companies experience a 50 percent increase in revenues. Compute the percentage change in profits for each company
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