Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

really need help in this one. thank you in advance Company A is a manufacturer with sales of $3,500,000 and a 50% contribution margin. Its

really need help in this one. thank you in advance
image text in transcribed
image text in transcribed
image text in transcribed
Company A is a manufacturer with sales of $3,500,000 and a 50% contribution margin. Its fixed costs equal $1,200,000 Company Bis a consulting firm with service revenues of $3,400,000 and a 20% contribution margin. Its fixed costs equal $150,000 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. DOL Company Benefits Compute the degree of operating leverage (DOL) for each company. Contribution Margin loco Statemco Company A Company B Degree of Operatiog Levetde Denominator Choose: Numerator Ratio Degree of Operating leverage DOL Company Benefits Compute the degree of operating leverage (DOL) for each company. Contribution Margin Income Statement Company A Company B Degree of Operating Leverage Denominator Choose: Numerator Ratio Degree of Operating Leverage 0 Company A Company B 0 Company Benefits > many dicturer with sales of $3,500,000 and a 50% contribution margin Its fixed costs equal $1,200,000. Company a consulting firm with service revenues of $3,400,000 and a 20% contribution margin. Its fixed costs equal $150,000. 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. DOL Company Benefits *** Which company benefits more from a 20% increase in sales Which company benefits more from a 20% increase in sales

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems Controls And Processes

Authors: Leslie Turner, Andrea B. Weickgenannt, Mary Kay Copeland

5th Edition

1119989485, 9781119989486

More Books

Students also viewed these Accounting questions

Question

Briefly describe how to bargain.

Answered: 1 week ago