The following sales and cost data (In thousands) are for two companies in the transportation Industry. Sales Variable costs Contribution margin Fixed costs Operating profit Req 1A Company A Percent Amount of Sales $ 270,000 100% 58 50% 135,000 Req 1B $ 135,000 32,400 $ 102,600 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. Degree of operating leverage Company B Complete this question by entering your answers in the tabs below. Amount $ 270,000 81,000 $ 189,000 79,400 $ 109,600 Req 2 Percent of Sales 100% 30 70% Calculate the degree of operating leverage (DOL) for each company. (Round your answers to 3 decimal places.) Company A Company B Req 1B > D

The foliowing sales and cost data (in thousands) are for two compantes in the transportation industry? Regulred: 1-3. Caiculate the degree of operating leveroge (DOL.) for esch compony. 1.b if sales increase from the present fevel. which company benefits more? 2 Aczume that sales nise 5% in the next year but that everything eise temains constant Caicuiate the percertoge increase in proft tor eoch compary Complete this questron by entering your answers in the tabs below