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

	Company A								Company B
	Amount				Percent of Sales				Amount				Percent of Sales
Sales	$	210,000				100	%		$	210,000				100	%
Variable costs		105,000				50				63,000				30
Contribution margin	$	105,000				50	%		$	147,000				70	%
Fixed costs		12,600								47,600
Operating profit	$	92,400							$	99,400

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 15% in the next year but that everything else remains constant. Calculate the percentage increase in profit for each company.