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Blossom's Shingle Corporation is considering the purchase of a new automated shingle$-$cutting machine. The new machine will reduce

variable labor costs but will increase depreciation expense. Contribution margin is expected to increase from $$269,750$ to $$296,725.$

Net income is expected to be the same at $$41,500.$

Compute the degree of operating leverage before and after the purchase of the new equipment. $($Round answers to $2$ decimal places, eg$.$

$1\mathrm{.}52.)$

Degree of operating leverage $($old$)$

Degree of operating leverage $($new$)$

eTextbook and Media

Attempts: $1$ of $3$ usedCurrent Attempt in Progress

Your answer is incorrect

Blossom's Shingle Corporation is considering the purchase of a new automated shingle$-$cutting machine. The new machine will reduce

variable labor costs but will increase depreciation expense. Contribution margin is expected to increase from $$269,750$ to $$296,725.$

Net income is expected to be the same at $$41,500.$

Compute the degree of operating leverage before and after the purchase of the new equipment. $($Round answers to $2$ decimal places, eg$.$

$1\mathrm{.}52.)$

Degree of operating leverage $($old$)$

Degree of operating leverage $($new$)$

eTextbook and Media

Attempts: $1$ of $3$ usedCurrent Attempt in Progress

Your answer is incorrect

Blossom's Shingle Corporation is considering the purchase of a new automated shingle$-$cutting machine. The new machine will reduce

variable labor costs but will increase depreciation expense. Contribution margin is expected to increase from $$269,750$ to $$296,725.$

Net income is expected to be the same at $$41,500.$

Compute the degree of operating leverage before and after the purchase of the new equipment. $($Round answers to $2$ decimal places, eg$.$

$1\mathrm{.}52.)$

Degree of operating leverage $($old$)$

Degree of operating leverage $($new$)$

eTextbook and Media

Attempts: $1$ of $3$ used