The following sales and cost data (in thousands) are for two companies in the transportation industry: Sales Amount $230,000 Company A Company B Percent of Sales 100% Percent of Sales 100% Amount $230,000 Variable costs Contribution margin 115,000 $115,000 50 69,000 30 50% $161,000 70% Fixed costs 18,400 Operating profit $ 96,600 57,400 $103,600 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.