Company A has current sales of $11, 163, 368 and a 36% contribution margin. Its fixed costs are $2,311,782. Company B is a service firm with current service revenue of $5,963, 380 and a 30% contribution margin. Company B's fixed costs are $540, 865. Compute the degree of operating leverage for Company A. Round to the hundredth, two decimals.

Company A has current sales of $11, 163, 368 and a 36% contribution margin. Its fixed costs are $2,311,782. Company B is a service firm with current service revenue of $5,963, 380 and a 30% contribution margin. Company B's fixed costs are $540, 865. Compute the degree of operating leverage for Company A. Round to the hundredth, two decimals.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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