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Company A has current sales of $10,487,521 and a 46% contribution margin. Its fixed costs are $2,122,148. Company B is a service firm with current
Company A has current sales of $10,487,521 and a 46% contribution margin. Its fixed costs are $2,122,148. Company B is a service firm with current service revenue of $5,098,360 and a 16% contribution margin. Company Bs fixed costs are $601,915. Compute the degree of operating leverage for Company B if there was a 23% increase in revenue. Round to the hundredth, two decimals. (show your work)
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