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Martinez Manufacturing is considering buying new equipment for its factory. The new equipment will reduce variable labor costs but increase depreciation expense. Contribution margin

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Martinez Manufacturing is considering buying new equipment for its factory. The new equipment will reduce variable labor costs but increase depreciation expense. Contribution margin is expected to increase from $240,000 to $288,000. Net income is expected to remain the same at $100,000. Compute the degree of operating leverage before and after the purchase of the new equipment. (Round answers to 2 decimal places, e.g. 15.25.) Degree of operating leverage Before After

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