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Company A is a manufacturer with current sales of $3,200,000 and a 50% contribution margin. Its fixed costs equal $1,140,000. Company B is a consulting

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Company A is a manufacturer with current sales of $3,200,000 and a 50% contribution margin. Its fixed costs equal $1,140,000. Company B is a consulting firm with current service revenues of $3,300,000 and a 25% contribution margin. Its fixed costs equal $340,000. Compute the degree of operating leverage (DOL) for each company. ontribution Margin Income Statement Company A Company B Degree of Operating Leverage Choose Numerator Denominator Ratio Degree of Operating Leverage Company A Company B Identify which company benefits more from a 20% increase in sales. O Company A O Company B

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