The following sales and cost data (in thousands) are for two companies in the transportation industry: Company A Percent of Amount Sales $160,000 100% 80,000 50 $ 80,000 28,000 $ 52,000 Sales Variable costs Contribution margin Fixed costs Operating profit Company B Percent of Amount Sales $ 160,000 32,000 $ 128,000 80% 53,000 $ 75,000 100% 20 50% 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 10% 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. Reg 1A Reg 1B Reg 2 Calculate the degree of operating leverage (DOL) for each company. (Round your answers to 3 decimal places.) Company A Company B Degree of operating leverage Reg 1A Req 1B > Reg 1A Reg 1B Reg 2 If sales increase from the present level, which company benefits more? O Company A O Company B Reg 1A Reg 1B Reg 2 Assume that sales rise 10% 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%).) Company A Company B Increase in profit Exercise 9-35 CVP Analysis [LO 9-2, 9-3, 9-5] Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: $33,000,000 Sales Operating expenses: Variable expenses Fixed expenses Total expenses Operating profit $26,400,000 3,300,000 29,700,000 $ 3,300,000 Required: 1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $3,900,000. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 3. What is the breakeven point in sales dollars if the variable expenses increases by 12%? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) 1. Breakeven point in sales dollars 2. Required sales in dollars 3. Breakeven point in sales dollars