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Business, 27.10.2020 17:50 kelkel4731

Company A is a manufacturer with sales of $3,300,000 and a 60% contribution margin. Its fixed costs equal $1,450,000. Company B is a consulting firm with service revenues of $3,200,000 and a 30% contribution margin. Its fixed costs equal $460,000. Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales.

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Company A is a manufacturer with sales of $3,300,000 and a 60% contribution margin. Its fixed costs...
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