Chapter 5 question 14Company A is a manufacturer with sales of $3,200,000 and a 50% contribution margin. It's fixed costs equal $1,080,000. Company B is a consulting firm with service revenues of $3,100,000 and a 25% contribution margin. It's fixed costs equal $280,000.Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales. There is oneMore blue chart questionWhich company benefits more from a 20% increase in sales?

Ch 14 DOL Company Benefits Compute the degree of operating leverage (DOL) for each company. Contribution Margin Income Statement ints Company A Company B Skipped eBook Hint Print Degree of Operating Leverage Choose: Numerator 1 Denominator Ratio Degree of Operating Leverage 0 Company A 0 Company B DOI Company Benefits