1. The following table contains selected operating data for 2 competing firms in the same industry.

Matasia Company Ltd (Kshs)

Corner Baridi Company Ltd (Kshs)

Sales	25,000,000 30,000,000
Fixed Costs Variable Costs	8,000,000 15,000,000
	40% of Sales 30% of Sales

Required

1. For both companies determine the Degree of Operating Leverage (4 marks)

Which company has a greater amount of business risk and why? (2 mark