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Category > Accounting Posted 30 Jul 2017 My Price 4.00

contribution margin

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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Maurice Tutor
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Status NEW Posted 30 Jul 2017 03:07 PM My Price 4.00

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