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Category > Business & Finance Posted 23 Jun 2017 My Price 5.00

Exercise 22-21 Operating leverage computed and applied

Exercise 22-21 Operating leverage computed and applied L.O. A2


Company A is a manufacturer with current sales of $3,500,000 and a 50% contribution margin. Its fixed costs equal $1,200,000. Company B is a consulting firm with current service revenues of $3,500,000 and a 20% contribution margin. Its fixed costs equal $150,000.


1.


Compute the degree of operating leverage (DOL) for each company. (Round your answers to 1 decimal place.)


Company A%u2019s DOL?


Company B%u2019s DOL?

 

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Alpha Geek
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Status NEW Posted 23 Jun 2017 07:06 AM My Price 5.00

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file 1498204610-446484_1_636337739530340443_Degree-of-Operating-Leverage.xlsx preview (96 words )
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