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The following sales and cost data (in thousands) are for two companies in the transportation industry Company A Company B Percent of Percent of AmountSales
The following sales and cost data (in thousands) are for two companies in the transportation industry Company A Company B Percent of Percent of AmountSales Amount $140,000 70,000 Contribution margin S 70,000 22,400 Sales $140,000 s 98,000- S 54, 600 100 Sales variable costs 100% 50 5 42,000 30 0% 70% Fixed costs 43, 400 operating profit 47,600 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 Assume that sales rise 20% in the next year but that everything else remains constant. Calculate the percentage inc profit for each company (input your answers as percentages rounded to 2 decimal places ie . 0.1567s 15.67%). ncrease in Compony A Company B Increase in profit
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