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Please interpret Company A and Company B's results below in terms of the factors that impact Cost Volume Profit Analysis (CVP) Why does Company B

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Please interpret Company A and Company B's results below in terms of the factors that impact Cost Volume Profit Analysis (CVP) Why does Company B have the greater degree of operating leverage? As a manager, why is operating leverage an important concept? Company A Company B Sales (10,000 units times $26) $260,000 Sales (10,000 units times $32) $320,000 Less Variable expenses (10,000 units $16) 160,000 Less Variable expenses (10,000 units 200,000 times $20) Contribution margin (a) 100,000 Contribution margin (a) 120,000 Less Fixed expenses 80,000 Less Fixed expenses 100,000 Net operating income (b) 20,000 Net operating income (b) 20,000 Degree of operating leverage (a divided Degree of operating leverage (a divided by 6.0 5.0 by b) b) Cubeerika

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