Business, 18.03.2021 01:30 santiagodiaz727

Company A is a manufacturer with sales of $3,900,000 and a 60% contribution margin. Its fixed costs equal $1,750,000. Company B is a consulting firm with service revenues of $3,800,000 and a 30% contribution margin. Its fixed costs equal $580,000. 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 $3,900,000 and a 60% contribution margin. Its fixed costs...

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