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Business, 19.03.2021 18:20 ibrahimuskalel

You are analyzing Barroz Corporation and Newton Corporation and have concluded that Barroz has a higher operating leverage factor than Newton. Which one of the following choices correctly depicts: a. the relative use of fixed costs (as opposed to variable costs) for the two companies
b. the percentage change in income caused by a change in sales

Relative Use of Fixed Costs as Opposed to Variable Costs Percentage Change in Income Caused by a Change in Sales
A. Greater for Barroz Greater for Barroz
B. Greater for Barroz Lower for Barroz
C. Greater for Barroz Equal for Both
D. Lower for Barroz Greater for Barroz
E. Lower for Barroz Lower for Barroz

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