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18. Income statements for two different companies in the same industry are as follows: Duncan Macduff $375,000 $375,000 300,000 150,000 Sales Total variable cost Contribution
18. Income statements for two different companies in the same industry are as follows: Duncan Macduff $375,000 $375,000 300,000 150,000 Sales Total variable cost Contribution margin Total fixed cost Operating income $75,000 $225,000 50,000 200,000 $25,000 $25,000 1. Compute the degree of operating leverage for each company. 2. Suppose that both companies experience a 30% increase in sales. Compute the percentage change in profits for each company
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