Atech has fixed costs of $11.2 million and profits of $4 million. Its competitor, ZTech, is roughly the same size and this year earned the same profits, $4 million. However, ZTech operates with fixed costs of $1.04 million and lower variable costs.
a. Calculate the operating leverage for each firm. (Round your answers to 2 decimal places.)
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Atech has fixed costs of $11.2 million and profits of $4 million. Its competitor, ZTech, is roughly...
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