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What do these formulas mean? What does S stand for?
•DOL (degree of operating leverage) = (S – VC)/(S – VC – FC) = % Change in Op Income for given % change in Sales
•DFL (degree financial leverage) = (S – VC – FC)/(S – VC – FC – I) = % change in NI from given % change in Op Income
May 24 2018 View more View Less
U(X,Y)= 2X + In(Y) (a) Find MUX (b) Find MUY (c) Find MRSX, Y (d) Given Px, Py, and I, find the demand functions X* and Y*
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