Firms A and B both produce and sell computer cables. The sales price is $5 per cable. Data for both firms at a sales volume of 100 units are as follows: Required: Which firm's profit or loss is more sensitive to changes in sales volume? Explain.

Question

Firms A and B both produce and sell computer cables. The sales price is $5 per cable. Data for both firms at a sales volume of 100 units are as follows:  Required: Which firm's profit or loss is more sensitive to changes in sales volume? Explain.

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The Answer of Firms A and B both produce and sell computer cables. The sales price is $5 per cable. Data for both firms at a sales volume of 100 units are as follows:  Required: Which firm's profit or loss is more sensitive to changes in sales volume? Explain.

Firms a and B Both Produce and Sell Computer Cables