Company A is a manufacturer with sales of $3,000,000 and a 60% contribution margin. Its fixed costs equal $1,320,000. Company B is a consulting firm with service revenues of $3,100,000 and a 25% contribution margin. Its fixed costs equal $270,000. Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales.

DOL Company Benefits Compute the degree of operating leverage (DOL) for each company. Contribution Margin Income Statement Company A Company B Degree of Operating Leverage Denominator Choose: Numerator Ratio = Degree of Operating Leverage 0 Company A Company B 0 Company A is a manufacturer with sales of $3,000,000 and a 60% contribution margin. Its fixed costs equal $1,320,000. Company B is a consulting firm with service revenues of $3,100,000 and a 25% contribution margin. Its fixed costs equal $270,000. 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 Which company benefits more from a 20% increase in sales. Which company benefits more from a 20% increase in sales.