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Company A is a manufacturer with sales of $6,000,000 and a 60% contribution margin. Its fixed costs equal $2,600,000. Company Bis a consulting firm with

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Company A is a manufacturer with sales of $6,000,000 and a 60% contribution margin. Its fixed costs equal $2,600,000. Company Bis a consulting firm with service revenues of $4,500,000 and a 25% contribution margin. Its fixed costs equal $375,000 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 Compute the degree of operating leverage (DOL) for each company Contribution Marin Income Statement Company A Company B Degree of operating leverage Denominator Choose: Numerator Ratio Degree of Operating Loverage Company A Company B Company Benefits >

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