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1. What are 3 specific variable costs that you think Apple would have? 2. What...

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Accounting

1. What are 3 specific variable costs that you think Apple would have?

2. What are 3 specific fixed costs that you think Apple would have?

3. What type of cost structure does Apple have?

a. Higher variable cost structure

b. Higher fixed cost structure

4. Based on your answer to the previous question regarding Apple's cost structure, what would Apple's degree of operating leverage be relative to the opposite cost structure?

a. Higher

b. Lower

5. Based on your answer to the previous question regarding Apple's degree of operating leverage, how would you assess Apple's risk exposure relative to the opposite cost structure?

a. Higher

b. Lower

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Exercise 25-2