Ea13.
lo 3.5company a has current sales of $10,000,000 and a 45% contribution margin. its fix...
Ea13.
lo 3.5company a has current sales of $10,000,000 and a 45% contribution margin. its fixed costs are $3,000,000. company b is a service firm with current service revenue of $5,000,000 and a 20% contribution margin. company b’s fixed costs are $500,000. compute the degree of operating leverage for both companies. which company will benefit most from a 25% increase in sales? explain why.
Answers: 2
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