Bramble's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine wi
Posted: Fri Jul 01, 2022 8:47 am
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)