The following sales and cost data $($in thousands$)$ are for two companies in the transportation industry:

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?

Assume that sales rise $10\%$ 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$1A$

Req $1B$

Req $2$

Calculate the degree of operating leverage $($DOL$)$ for each company. $($Round your answers to $3$ decimal places.$)$