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Company A has current sales of $11,816,738 and a 45% contribution margin. Its fixed costs are $2,657,968. Company B is a service firm with current
Company A has current sales of $11,816,738 and a 45% contribution margin. Its fixed costs are $2,657,968. Company B is a service firm with current service revenue of $6,434,807 and a 12% contribution margin. Company Bs fixed costs are $565,098. Compute the degree of operating leverage for Company A. Round to the hundredth, two decimals.
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