Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Company A has current sales of $11,798,893 and a 41% contribution margin. Its fixed costs are $2,689,920. Company B is a service firm with
Company A has current sales of $11,798,893 and a 41% contribution margin. Its fixed costs are $2,689,920. Company B is a service firm with current service revenue of $6,015,013 and a 21% contribution margin. Company B's fixed costs are $611,121. Compute the degree of operating leverage for Company A. Round to the hundredth, two decimals. Question 8 1 pts Company A has current sales of $10,886,071 and a 39% contribution margin. Its fixed costs are $2,931,296. Company B is a service firm with current service revenue of $6,146,378 and a 26% contribution margin. Company B's fixed costs are $643,671. Compute the degree of operating leverage for Company A if there was a 16% increase in sales. Round to the hundredth, two decimals.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started