Business, 16.04.2021 01:00 saykblahwah309

Company A is a manufacturer with sales of $3,400,000 and a 60% contribution margin. Its fixed costs equal $1,600,000. Company B is a consulting firm with 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. Which company benefits more from a 20% increase in sales.

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Company A is a manufacturer with sales of $3,400,000 and a 60% contribution margin. Its fixed costs...

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