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Sales Variable costs Contribution margin Fixed costs Net income $525000 315000 210000 199500 $10500 $525000 262500 262500 252

Compute the degree of operating leverage for each company. (Round ans Degree of Operating Leverage Swifty Company Marigold Co
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Answer #1

Degree of Operating Leverage = Contribution Margin/Net Income For Swifty Company: = $210000/$10500 = 20.00 Marigold Company:

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