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Company A has current sales of $10,989,680 and a 37% contribution margin. Its fixed costs are $2,606,591. Company B is a service firm with current
Company A has current sales of $10,989,680 and a 37% contribution margin. Its fixed costs are $2,606,591. Company B is a service firm with current service revenue of $5,330,323 and a 17% contribution margin. Company Bs fixed costs are $560,677. Compute the degree of operating leverage for Company A if there was a 11% increase in sales. Round to the hundredth, two decimals.
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