Req

Req 2 - Assume that sales rise 5% in the next year but that everything else remains constant. Calculate the percentage increase in profit for each company. (Input your answers as percentages rounded to 2 decimal places (i.e., 0.1567 = 15.67%).)

-increase in profit - Company A Company B

% %

3 The following sales and cost data (in thousands) are for two companies in the transportation industry: 10 points Company A Percent Amount of Sales $ 190,000 100% 95,000 50 $ 95,000 50% 24,700 $ 70,300 Company B Percent Amount of Sales $ 190,000 100% 57,000 30 $ 133,000 70% Sales Variable costs Contribution margin Fixed costs Operating profit eBook 55,700 $ 77,300 Ask Print References Required: 1-a. Calculate the degree of operating leverage (DOL) for each company. 1-b. If sales increase from the present level, which company benefits more? 2. Assume that sales rise 5% in the next year but that everything else remains constant. Calculate the percentage increase in profit for each company Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Calculate the degree of operating leverage (DOL) for each company. (Round your answers to 3 decimal places.) Company A Company B Degree of operating leverage