Company A has current sales of $ 1 1 , 5 7 9 , 8 6 2

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Company A has current sales of $

11, 579, 862

and a

43 %

contribution margin. Its fixed costs are $

2, 721, 722 .

Company B is a service firm with current service revenue of $

6, 963, 752

and a

22 %

contribution margin. Company Bs fixed costs are $

585, 000 .

Compute the degree of operating leverage for Company B

.

Round to the hundredth, two decimals.

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0133400694

1st canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

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Posted Date: Apr 16, 2024 05:44 AM

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Company A has current sales of $ 1 1 , 5 7 9 , 8 6 2

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Fundamentals of Corporate Finance

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