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The following sales and cost data (in thousands) are for two companies in the transportation industry Company A CompanyB Percent Percent of of Amount $140,000
The following sales and cost data (in thousands) are for two companies in the transportation industry Company A CompanyB Percent Percent of of Amount $140,000 70, 000 contribution margin s 70,000 22, 400 Sales 100% 50 50% Sales Amount $140,000 42,000 S 98,000 43,400 S 54,600 100% Sales Variable costs 30 70% Fixed costs 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 ioease in profit for each company. (Input your answers as percer S6S0 tages rounded to 2 decimal places (i e.. o.isa, Company A Company B Increase in profi
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