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Kipish [7]
1 year ago
6

A 15% increase in sales resulted in a 40% increase in net income for Company A and a 60% increase in net income for Company B. B

ased on this, which company has the greater operating leverage?
Business
1 answer:
Ivahew [28]1 year ago
3 0

company B has the greater operating leverage

What is operating leverage?

A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.

The break-even point of a business is determined using operating leverage, which also aids in determining the right selling prices to cover all expenditures and make a profit.

Regardless of whether they sell any units of product, businesses with significant operational leverage must cover a bigger amount of fixed costs each month.

Low-operating-leverage businesses may have high variable costs that are directly related to sales, but they also have fewer monthly fixed expenses.

Learn more about operating leverage with the help of given link:-

brainly.com/question/6238482

#SPJ4

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Millions of West Africans who migrated to Nigeria during the 1970's, when the country's economy expanded, were expelled during t
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Pull factor becoming a push factor

Explanation:

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N.B: look up Ghana-must-go bags on google.

Cheers.

8 0
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