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Company A is a manufacturer with current sales of $3,600,000 and a 60% contribution margin. Its fixed costs equal $1,740,000. Company B is a consulting

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Company A is a manufacturer with current sales of $3,600,000 and a 60% contribution margin. Its fixed costs equal $1,740,000. Company B is a consulting firm with current service revenues of $3,700,000 and a 25% contribution margin. Its fixed costs equal $480,000. Compute the degree of operating leverage (DOL) for each company. rg CompanyA Company B Sales Variable costs Contribution margin Fixed costs Pretax income Degree of Operating Leverage Choose: Numerator Denominator Ratio Contribution margin ratio Degree of Operating Leverage Company A Company B

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