Question
Fire Company is a service firm with current service revenue of $900,000 and a 40% contribution margin. Its fixed costs are $200,000. Ice Company has
Fire Company is a service firm with current service revenue of $900,000 and a 40% contribution margin.
Its fixed costs are $200,000. Ice Company has current sales of $420,000 and a 30% contribution margin.
Its fixed costs are $90,00.
What is the degree of operating leverage for Fire Company? and for the Ice Company?
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Computerized Accounting With QuickBooks 2014
Authors: Kathleen Villani, James B. Rosa, Blanche Ettinger
1st Edition
0763860239, 9780763860233
