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4. The following sales and cost data (in thousands) are for two companies in the transportation industry: Company A Company B Amount Percent of

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4. The following sales and cost data (in thousands) are for two companies in the transportation industry: Company A Company B Amount Percent of Sales Percent of Amount Sales Sales Variable costs $270,000 135,000 100% 50 $270,000 100% 81,000 30 Contribution margin Fixed costs $ 135,000 32,400 50% $ 189,000 70% 79,400 eBook $ 102,600 $ 109,600 Print References Operating profit Required: 1-a. Calculate the degree of operating leverage (DOL) for each company. 1-b. If sales increase from the present level, which company benefits more? 2. Assume that sales rise 5% in the next year but that everything else remains constant. Calculate the percentage increase in profit for each company. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2 Calculate the degree of operating leverage (DOL) for each company. (Round your answers to 3 decimal places.) Degree of operating leverage Company A Company B Req 18 >

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