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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
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
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