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Company A is a manufacturer with sales of $3,200,000 and a 50% contribution margin. Its fixed costs equal $1,080,000. Company B is a consulting firm

Company A is a manufacturer with sales of $3,200,000 and a 50% contribution margin. Its fixed costs equal $1,080,000. Company B is a consulting firm with service revenues of $3,100,000 and a 25% contribution margin. Its 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.

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Complete this question by entering your answers in the tabs below. 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 = Company A Company B Degree of Operating Leverage 0 0 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.

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