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4 Company A Is a manufacturer with current sales of Company' B is a consulting firm with current service revenues or saooooo and a 20%

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4 Company A Is a manufacturer with current sales of Company' B is a consulting firm with current service revenues or saooooo and a 20% contro non marg n t, tied OKS $330,000. $3700.000 and a 60% contribution margin its tied costs equal Stano,000. Compute the degree of operating leverage (DOL) for each company Sales S 3.700.000 3,800 2 220 xed costs 1810.000 Print Degree of margin Pretax income Company A Company BS 2220,000 0 760,000 identify which company benefits more from a 20% increase in sales. Company A O Company B

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