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The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Sales $ 140,000 100.00

The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Sales $ 140,000 100.00 Amount $ 140,000 Percent 100.00 Variable costs 84,000 60.00 42,000 30.00 Contribution margin 40.00 70.00 56,000 36,500 $ 19,500 98,000 Fixed costs Operating income (B) X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be: 72,550 $ 25,450 Multiple Choice O 2.87 4.00 6.00 5.00 2.00

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