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The following sales and cost data ( in thousands ) are for two companies in the transportation industry: Required: 1 - a . Calculate the
The following sales and cost data in thousands are for two companies in the transportation industry:
Required:
a Calculate the degree of operating leverage DOL for each company.
b If sales increase from the present level, which company benefits more?
Assume that sales rise 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
Req B
Req
Calculate the degree of operating leverage DOL for each company. Round your answers to decimal places.
tableCompany ACompany BDegree of operating leverage,
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