Question: Homework Help Save & Exit Sub Check my world Exercise 18-24 Operating leverage computed and applied LO A2 Company A is a manufacturer with sales


Homework Help Save & Exit Sub Check my world Exercise 18-24 Operating leverage computed and applied LO A2 Company A is a manufacturer with sales of $3,700,000 and a 60% contribution margin. Its fixed costs equal $1,650,000. Company B is a consulting firm with service revenues of $3,600,000 and a 30% contribution margin. Its fixed costs equal $540,000 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. DOL Company Benefits Compute the degree of operating leverage (DOL) for each company. Contribution Margin Income Statement Company A $ 3,700,000 Company B Sales Variable costs Contribution margin Fixed costs Pretax income Homework Saved Compute the degree of operating leverage (DOL) for each company. Which company bene Complete this question by entering your answers in the tabs below. DOL Company Benefits Which company benefits more from a 20% increase in sales. Which company benefits more from a 20% increase in sales. DOL Company Benefits
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