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Company A is a manufacturer with sales of $3,300,000 and a 60% contribution margin. Its fixed costs equal $1,530,000. Company B is a consulting firm

Company A is a manufacturer with sales of $3,300,000 and a 60% contribution margin. Its fixed costs equal $1,530,000. Company B is a consulting firm with service revenues of $3,400,000 and a 30% contribution margin. Its fixed costs equal $540,000. Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales.image text in transcribed

Check my w Complete this question by entering your answers in the tabs below. DOL 6 points Company Benefits Compute the degree of operating leverage (DOL) for each company. eBook Contribution Margin Income Statement Company A Hint Company B Print References Choose: Numerator Degree of Operating Leverage Denominator = 1 = Ratio Degree of Operating Leverage Company A Company B | IDOL Company Benefits >

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