The following sales and cost data (in thousands) are for two companies in the transportation industry: Company A Percent of Amount Sales $140,000 100% 70,000 $ 70,000 50% 22,400 $ 47,600 Sales Variable costs Contribution margin Fixed costs Operating profit Company B Percent of Amount Sales $140,000 100% 42,000 $ 98,000 70% 43,400 $ 54,600 30 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 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 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 2 If sales increase from the present level, which company benefits more? O Company A O Company B Req 1A Req 1B Reg 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%).) Company A Company B Increase in profit