PLEASE HELLPP!!! Two firms, A and B, both produce brushes. The price of...
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PLEASE HELLPP!!!
Two firms, A and B, both produce brushes. The price of brushes is $2.20 each. Firm A has total fixed costs of $452,000 and variable costs of 68 cents per brush. Firm B has total fixed costs of $260,000 and variable costs of 72 cents per brush. The corporate tax rate is 35%. If the economy is strong, each firm will sell 1,520,000 brushes. If the economy enters a recession, each firm will sell 970,000 brushes. Calculate Firm A's degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage
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