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

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Company A is a manufacturer with sales of $3,600,000 and a 60% contribution margin. Its fixed costs equal $1,600,000. Company Bis o consulting firm with service revenues of $3,500,000 and a 25% contribution margin. Its fixed costs equal $340,000 Compute the degree of operating leverage (DOL) for each company, which company benefits more from a 20% increase in sales, Compute the degree of operating leverage (DOL) for each company. Contribution Margin Income Statement Company A Company B 1 Degree of Operating.loverage Denominator Choose Numerator Ratio Degree of Operating Leverige Company A Company B

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