COVID-19 Resources - Indiana
So Color Rugs will prefer Option 1. For Q < 100, say, 99 carpets, Option 1 gives operating income = ($150 ( 99) ( $5,000 = $9,850. Option 2 gives operating income = $100 ( 99 = $9,900. So Color Rugs will prefer Option 2. 3. Degree of operating leverage = Under Option 1, degree of operating leverage = = 1.5 ................
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