Degree of operating leverage before

Reference no: EM131018723

Mark'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 $157,440 to $241,920. Net income is expected to be the same at $38,400.

Compute the degree of operating leverage before and after the purchase of the new equipment

Reference no: EM131018723

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