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The following sales and cost data (000s) are for two companies in the transportation industry: Required: Calculate the degree of operating leverage (DOL) for each
The following sales and cost data (000s) are for two companies in the transportation industry: Required: Calculate the degree of operating leverage (DOL) for each company. (Round your answers to 3 decimal places.) If sales increase from the present level, which company benefits more? Company A Company B Assume that sales rise 10% in the next year but that everything else remains constant. Calculate the percentage increase in profit for each company. (Do not round intermediate calculations. Input your answers as whole percentages rounded to two decimal places (i.e., .1567 = 15.67%))
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