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Richard's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine will reduce variable labour costs but will increase depreciation
Richard's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine will reduce variable labour costs but will increase depreciation expense. The contribution margin is expected to increase from $147,200 to $220,800. Operating income is expected to be the same at $36,800. (a1) Calculate the degree of operating leverage before and after the purchase of the new equipment. (Round answers to 0 decimal places, e.g. 125.)
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