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Brief Exercise 6-13 Sam's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine will reduce variable labor costs but
Brief Exercise 6-13 Sam's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine will reduce variable labor costs but will increase depreciation expense. Contributian margin is expected to increase from $304,920 to $338.800. Net income is expected to be the same at $18,400. Compute the degree of operating leverage before and after the purchase of the new equipment. (Round answers to 1 decimal place, e.g. 1.5.) Degree of operating leverage (old) Degree of operating leverage (new) Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT Question Attempts: Unlimited
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