The following sales and cost data (in thousands) are for two companies in the transportation industry:

Company A	Company B
Amount	Percent of Sales	Amount	Percent of Sales
Sales	$ 230,000	100%	$ 230,000
Variable costs	115,000	50	69,000
Contribution margin	$ 115,000	50%	$ 161,000
Fixed costs	18,400		57,400
Operating profit	$ 96,600		$ 103,600

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 5% in the next year but that everything else remains constant. Calculate the percentage increase in profit for each company.