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help! Sheridan's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine will reduce variable labor costs but will increase
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Sheridan's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine will reduce variable labor costs but will increase depreciation expense. Contribution margin is expected to increase from $247,800 to $272,580. Net income is expected to be the same at $42,000. Compute the degree of operating leverage before and after the purchase of the new equipment. (Round answers to 2 decimal places, eg. 1.52.1 Degree of operating leverage (old) Degree of operating leverage (new) Step by Step Solution
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