Company A is a manufacturer with current sales of $3,400,000 and a 60% contribution margin. Its fixed costs equal $1,600,000. Company B is a consulting firm with current service revenues of $3,500,000 and a 25% contribution margin. Its fixed costs equal $410,000. Compute the degree of operating leverage (DOL) for each company.
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Company A is a manufacturer with current sales of $3,400,000 and a 60% contribution margin. Its fixe...
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