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10 Company A is a manufacturer with current sales of $3,600,000 and a 60% contribution margin. Its fixed costs equal $1,600,000 Company Bis a consulting

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10 Company A is a manufacturer with current sales of $3,600,000 and a 60% contribution margin. Its fixed costs equal $1,600,000 Company Bis a consulting firm with current service revenues of $3,500,000 and a 25% contribution margin. Its fixed costs equal $340,000 Compute the degree of operating leverage (DOL) for each company ebook Contribution Marglo Income Statement Company A Company B Hint Degree of Operating Leverage Numerator Denominator Choose Ratio Company A Company Degree of Operating Leverage 0 0 Identify which company benefits more from a 20% increase in sales Company A Company B

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