The relationship between financial leverage and profitability pelican paper, inc., and timberland forest, inc., are rivals in the manufacture of craft papers. some financial statement values for each company follow use them in a ratio analysis that compares the firms' financial leverage and profitability.

Andy purchases only two goods, apples (a) and kumquats (k). he has an income of $125 and can buy apples at $5 per pound and kumquats at $5 per pound. his utility function is u(a, k) = 6a + 2k. what is his marginal utility for apples and his marginal utility for kumquats? andy's marginal utility for apples (mu subscript a) is mu subscript aequals 6 and his marginal utility for kumquats (mu subscript k) is