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PLEASE HELP!! im stuck on the last question. Operating Leverage Income statements for two different companies in the same industry are as follows: Required: Compute
PLEASE HELP!! im stuck on the last question.
Operating Leverage
Income statements for two different companies in the same industry are as follows:
Required:
Compute the degree of operating leverage for each company.
Compute the breakeven point in dollars for each company.
Why is the breakeven point for Hobart, Inc., higher?
Because it must cover more in fixed expenses.
Suppose that both companies experience a percent increase in revenues. Compute the percentage change in profits for each company.
Elgin
X
Hobart
x
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