The following sales and cost data (in thousands) are for two companies in the transportation industry: Company A Percent Company B Percent of Sales Variable costs Contribution margin Fixed costs Operating profit Required: of Amount Sales $ 180,000 100% 90,000 $ 90,000 32,400 $ 57,600 50 Amount Sales $ 180,000 100% 54,000 30 50% $ 126,000 70% 61,400 $ 64,600 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 20% 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 18 Req 2 Calculate the degree of operating leverage (DOL) for each company. (Round your answers to 3 decimal places.) Degree of operating leverage Company A Company B The following sales and cost data (in thousands) are for two companies in the transportation industry: Company A Company B Amount Percent of Sales Percent of Sales 100% $ 180,000 100% 50 54,000 30 50% $ 126,000 70% 61,400 $ 64,600 Sales Variable costs Contribution margin Fixed costs Operating profit Required: Amount $ 180,000 90,000 $ 90,000 32,400 $ 57,600 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 20% in the next year but that everything else remains constant. Calculate the percent- for each company. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 If sales increase from the present level, which company benefits more? Company A Company B Check my wo The following sales and cost data (in thousands) are for two companies in the transportation industry: Contribution margin Sales Variable costs ok Fixed costs ht nces Operating profit Required: Company A Amount $ 180,000 90,000 Company B Percent of Amount Sales Percent of Sales 100% $ 180,000 50 54,000 $ 90,000 32,400 50% $ 126,000 61,400 $ 57,600 $ 64,600 100% 30 70% 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 20% 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 18 Req 2 Assume that sales rise 20% in the next year but that everything else remains constant. Calculate the percentage increase in profit for each company. (Input your answers as percentages rounded to 2 decimal places (i.e., 0.1567 = 15.67%).) Increase in profit Company A Company B Beg 18