Company A has current sales of $$10,333,702$ and a $43\%$ contribution margin. Its fixed costs are $$2,888,580.$ Company B is a service firm with current service revenue of $$6,519,757$ and a $20\%$ contribution margin. Company Bs fixed costs are $$570,348.$ Using the degree of operating leverage for Company B$,$ what will be the increase to net income if there was a $28\%$ increase in revenue? Round to the hundredth, two decimals.

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To calculate the increase in net income for Company B with a 28 increase in revenue using the degree ... View the full answer