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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's DOL?
Company B's DOL?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9976065

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