Bramble's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine wi

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Bramble's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine wi

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Bramble S Shingle Corporation Is Considering The Purchase Of A New Automated Shingle Cutting Machine The New Machine Wi 1
Bramble S Shingle Corporation Is Considering The Purchase Of A New Automated Shingle Cutting Machine The New Machine Wi 1 (15.45 KiB) Viewed 52 times
Bramble's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine will reduce variable labor costs but will increase depreciation expense. Contribution margin is expected to increase from $249,400 to $279,500. Net income is expected to be the same at $43,000. Compute the degree of operating leverage before and after the purchase of the new equipment. (Round answers to 1 decimal place, e.g. 1.5.) Degree of operating leverage (old) Degree of operating leverage (new)
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