Which firm has greater operating risk


Complete the following with example :

Consider the two firms Tweedle Dee and Tweedle Dum. Both firms operate in the same industry, but Tweedle Dum has a greater portion of fixed operating costs relative to variable costs than does Tweedle Dee.

Which firm has greater operating risk?

Which firm has a higher degree of operating leverage?

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Financial Accounting: Which firm has greater operating risk
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