Question: Exercise 22-21 Operating leverage computed and applied L.O. A2 Company A is a manufacturer with current sales of $3,500,000 and a 50% contribution margin. Its

Exercise 22-21 Operating leverage computed and applied L.O. A2 Company A is a manufacturer with current sales of $3,500,000 and a 50% contribution margin. Its fixed costs equal $1,200,000. Company B is a consulting firm with current service revenues of $3,500,000 and a 20% contribution margin. Its fixed costs equal $150,000. 1. Compute the degree of operating leverage (DOL) for each company. (Round your answers to 1 decimal place.) Company A

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