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Company A has current sales of $10,056,551 and a 42% contribution margin. Its fixed costs are $2,081,610. Company B is a service firm with
Company A has current sales of $10,056,551 and a 42% contribution margin. Its fixed costs are $2,081,610. Company B is a service firm with current service revenue of $5,339,561 and a 10% contribution margin. Company B's fixed costs are $667,962. Compute the degree of operating leverage for Company A if there was a 14% increase in sales. Round to the hundredth, two decimals. 0.28
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