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What is operating leverage, and how does it affect a firm's business risk? a. Show the operating break-even point if a company has fixed costs
What is operating leverage, and how does it affect a firm's business risk?
a. Show the operating break-even point if a company has fixed costs of $75,000, a sales price of $125, and variables costs of $82.
b. What is the break-even quantity if the price is decreased to $110?
c. What is the break-even point if the price is decreased to $110 and costs increase to $85?
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