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Business, 12.12.2019 03:31 TropicalFan

Atech has fixed costs of $7 million and profits of $4 million. its competitor, ztech, is roughly the same size and this year earned the same profits, $4 million. but it operates with higher fixed costs of $8 million and lower variable costs.

a. which firm has higher operating leverage
b. which firm will likely have higher profits if the economy strengthens?

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