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Explain why relatively small changes in companies’ revenues can result in relatively large changes in their...

Explain why relatively small changes in companies’ revenues can result in relatively large changes in their earnings or losses. In other words, if a company’s sales increase 12%, why do its earnings not also increase 12%?

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Ansuur The change in earnings ar losses will depend upon the the fixed and variable cost involved in the business and ich theDate : Page: o In Scenario 1 Sales 18000$ den: fixed Cost (2000$ Jus: Vaowalele cox 1600$ 2400$ Scenario 2 20000$ 12000$ 2000

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