Company A is a manufacturer with current sales of $3,300,000 and a 60% contribution margin. Its fixed costs equal $1,530,000. Company B is a consulting firm with current service revenues of $3,300,000 and a 30% contribution margin. Its fixed costs equal $540,000.

Compute the degree of operating leverage (DOL) for each company.

Identify which company benefits more from a 20% increase in sales.