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 ACompany BSales (10,000 units times $26)$260,000Sales (10,000 units times $32)$320,000Less Variable expenses (10,000 units $16) 160,000Less Variable expenses (10,000 units times $20) 200,000Contribution margin (a) 100,000Contribution margin (a) 120,000Less Fixed expenses 80,000Less Fixed expenses 100,000Net operating income (b) 20,000Net operating income (b) 20,000Degree of operating leverage (a divided by b) 5.0Degree of operating leverage (a divided by b) 6.0