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Please help with solving the problem with an explanation? Company A is a manufacturer with sales of $3,200,000 and a 50% contribution margin. Its fixed
Please help with solving the problem with an explanation?
Company A is a manufacturer with sales of $3,200,000 and a 50% contribution margin. Its fixed costs equal Company B is a consulting firm with service revenues of and a 25% contribution margin. Its fixed costs equal $280,000. Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales. Complete this question by entering your answers in the tabs below. Company Benefits Compute the degree of operating leverage (DOL) for each company. ontribution Margin ncome Statement Choose: Company A Company B Numerator Com A Degree of Operating Leverage Denominator Com Ratio Degree of Operating Leverage Company Benefits Company A is a manufacturer with sales of $3,200,000 and a 50% contribution margin. Its fixed costs equal Company B is a consulting firm with service revenues of and a 25% contribution margin. Its fixed costs equal $280,000. Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales. Complete this question by entering your answers in the tabs below. Company Benefits Compute the degree of operating leverage (DOL) for each company. ontribution Margin ncome Statement Choose: Company A Company B Numerator Com A Degree of Operating Leverage Denominator Com Ratio Degree of Operating Leverage Company Benefits
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