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From the following selected operating data, determine the DOL and comment on which company has the greater amount of business risk and why?
A B
Sales 2500000 3000000
Fixed Cost 750000 1500000
Variable cost 15% of sales 25% of sales
2.
Sales 2000000
Variable cost 1400000
Fixed Cost 400000 (includes 15% interest on 1 million borrowing
i...
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From the following selected operating data, determine the DOL and comment on which company has the greater amount of business risk and why?
A B
Sales 2500000 3000000
Fixed Cost 750000 1500000
Variable cost 15% of sales 25% of sales
2.
Sales 2000000
Variable cost 1400000
Fixed Cost 400000 (includes 15% interest on 1 million borrowing
i...
Essay fragment
General points of the essay
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