Example : Company A and Company Bare competitors in the market for a special machine part . The cost structure and price details are given below

Company A and Company B are competitors in the market for a special machine part. The cost structure and price details are given below:

Question :

Which firm has a high degree of operating leverage ?

• Attachment 1
• Attachment 2

Example :Company A and Company Bare competitors in the market for a special machinepart . The cost structure and price details are given below :"Company ACompany BSelling priceAED 30AED 30Variable cost per unitAED 10AED 20Fixed costsAED 60,000AED 20,000Question : Which firm has a high degree of operating leverage ?"