Firms Y and Z both produce and sell small gasoline engines. The sales price is $200 per engine. Data for both firms at a sales volume of 50 units are as follows: Required: From the existing level of sales, which firm's operating income is more sensitive to changes in sales volume? Show calculations and round your answers to 2 decimal places.

Question

Firms Y and Z both produce and sell small gasoline engines. The sales price is $200 per engine. Data for both firms at a sales volume of 50 units are as follows:  Required: From the existing level of sales, which firm's operating income is more sensitive to changes in sales volume? Show calculations and round your answers to 2 decimal places.

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The Answer of Firms Y and Z both produce and sell small gasoline engines. The sales price is $200 per engine. Data for both firms at a sales volume of 50 units are as follows:  Required: From the existing level of sales, which firm's operating income is more sensitive to changes in sales volume? Show calculations and round your answers to 2 decimal places.

Firms Y and Z Both Produce and Sell Small Gasoline