ch 18: question 8 algorithmic exercise

Chapter 18 Algorithmic Exercises Seved Help Save & Exit Check 8 Company A is a manufacturer with sales of $3,800,000 and a 50% contribution margin. Its fixed costs equal $1320,000. Company Bis a consulting firm with service revenues of $3,700,000 and a 25% contribution margin. Its fixed costs equal $370,000 Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales. 5 points Complete this question by entering your answers in the tabs below. eBook DOL Company Benefits Hain Compute the degree of operating leverage (DOL) for each company Contribution Margie Income Statement Company A Company B Sales Variable costs Contribution margin Food costs Pretax income Choose: Numerator Contribution margin Degree of Operating Leverage Denominator thetax income - Ratio Degree of Operating Leverage Company A Company 0 Company Benefits > not (4,000 - koby moorellasta Chapter 18 Algorithmic Exercises Saved Help Sa 8 5 points Company A is a manufacturer with sales of $3,800,000 and a 50% contribution margin. Its fixed costs equal $1,320,000. Company B is a consulting firm with service revenues of $3,700,000 and a 25% contribution margin. Its fixed costs equal $370,000 Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales. Complete this question by entering your answers in the tabs below. eBook DOL Company Benefits Which company benefits more from a 20% increase in sales Which company benets more from a 20% Increase in sales Print