21,2

Exercise 21-24 Operating leverage computed and applied LO A2 Company A is a manufacturer with sales of $6,000,000 and a 60% contribution margin. Its fixed costs equal $2,600,000. Company Bis a consulting firm with service revenues of $4,500,000 and a 25% contribution margin. Its fixed costs equal $375,000. Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales? Complete this question by entering your answers in the tabs below. DOL Company Benefits ces Compute the degree of operating leverage (DOL) for each company. Contribution Margin Income Statement Company A Company mA 10 DOL Company Benefits Compute the degree of operating leverage (DOL) for each company. contribution Margie Income Statement Company A Company B Degree of operating leverage Choose Numerator Denominator Ratio Degree of Operating Leverage Company A 0 Company B 0 Company Benefits > Complete this question by entering your answers in the tabs below. DOL Company Benefits Which company benefits more from a 20% increase in sales? Which company benefits more from a 20% increase in sales?