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5 Check my work 5 Company A is a manufacturer with sales of $3,900,000 and a 60% contribution margin. Its fixed costs equal $1,750,000. Company
5 Check my work 5 Company A is a manufacturer with sales of $3,900,000 and a 60% contribution margin. Its fixed costs equal $1,750,000. Company B is a consulting firm with service revenues of $3,800,000 and a 30% contribution margin. Its fixed costs equal $580,000. Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales. 6 points Skipped Complete this question by entering your answers in the tabs below. DOL Company Benefits eBook Compute the degree of operating leverage (DOL) for each company. Hint Contribution Margin Income Statement Company A Company B Print References Degree of Operating Leverage Denominator Choose: Numerator Ratio Degree of Operating Leverage 0 Company A Company B 0 5 Company A is a manufacturer with sales of $3,900,000 and a 60% contribution margin. Its fixed costs equal $1,750,000. Company a consulting firm with service revenues of $3,800,000 and a 30% contribution margin. Its fixed costs equal $580,000. 6 points Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales Skipped Complete this question by entering your answers in the tabs below. DOL Company Benefits eBook Which company benefits more from a 20% increase in sales. Hint Which company benefits more from a 20% increase in sales. DOL Company Benefits > Print References
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