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Company A has current sales of $11,238,668 and a 30% contribution margin. Its fixed costs are $2,510,757. Company B is a service firm with
Company A has current sales of $11,238,668 and a 30% contribution margin. Its fixed costs are $2,510,757. Company B is a service firm with current service revenue of $6,737,255 and a 15% contribution margin. Company B's fixed costs are $539,681. Compute the degree of operating leverage for Company B. Round to the hundredth, two decimals. D Question 10 1 pts Company A has current sales of $11,195,647 and a 37% contribution margin. Its fixed costs are $2,095,733. Company B is a service firm with current service revenue of $5,963,963 and a 12% contribution margin. Company B's fixed costs are $653,835. Compute the degree of operating leverage for Company B if there was a 12% increase in revenue. Round to the hundredth, two decimals.
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