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Atech has fixed costs of $12.0 million and profits of $5 million. Its competitor, ZTech,...

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Finance

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Atech has fixed costs of $12.0 million and profits of $5 million. Its competitor, ZTech, is roughly the same size and this year earned the same profits, $5 million. However, ZTech operates with fixed costs of $0.40 million and lower variable costs a. Calculate the operating leverage for each firm. (Round your answers to 2 decimal places.) DOL ATech DOL ZTech b. Which firm will likely have higher profits if the economy strengthens? ATech ZTech

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