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The following information relates to Gretan Ltd and Hutey Ltd. Both companies manufacture and sell calculators. Gretan Ltd Hutey Ltd Sales in units per

The following information relates to Gretan Ltd and Hutey Ltd. Both companies manufacture and sell calculators. Gretan Ltd Hutey Ltd Sales in units per year 20,000 20,000 Selling Price per unit Rs500 Rs500 high gross margi Low varahle ropte Variable Cost per unit Rs300 Rs100 Annual Fixed Costs Rs3,000,000 Rs7,000,000 Required (e) Explain the advantages and disadvantages of high operating leverage.

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