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Ford Motor Company is considering purchasing a new piece of equipment for one of its plants. The contribution margin is expected to increase from $

Ford Motor Company is considering purchasing a new piece of equipment for one of its plants. The contribution margin is expected to increase from $285,000 to $342,000. Net income is expected to remain at $100,000 for each year. Compute the degree of operating leverage before and after the purchase of the new equipment. (Round answers to 2 decimal places, e.g.15.25.)
Degree of Operating Leverage
Before
After

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