From the following selected operating date, determaine the DOL. Which company has the greater amount of business risk? Why?
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Particulars
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A Ltd
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B Ltd
|
|
Sales
|
2500000
|
3000000
|
|
Fixed Cost
|
750000
|
1500000
|
Variable expenses as a percentage of sales are 50% for firm A and 25% for firm B.