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Company A is a manufacturer with current sales of $3, 500,000 and a 50% contribution margin. Its fixed costs equal $1, 320,000. Company B is

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Company A is a manufacturer with current sales of $3, 500,000 and a 50% contribution margin. Its fixed costs equal $1, 320,000. Company B is a consulting firm with current service revenues of $3, 600,000 and a 20% contribution margin. Its fixed costs equal $270,000 Compute the degree of operating leverage (DOL) for each company. Identify which company benefits more from a 20% increase in sales. Company A Company B

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