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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 Amount Percent Sales $
The sales and cost data for two companies in the transportation industry are as follows:
| X Company | Y Company | |||
| Amount | Percent | Amount | Percent | |
| Sales | $ 120,000 | 100 | $ 120,000 | 100 |
| Variable costs | 72,000 | 60 | 36,000 | 30 |
| Contribution margin | 48,000 | 40 | 84,000 | 70 |
| Fixed costs | 36,000 | 72,000 | ||
| Operating income (B) | $ 12,000 | $ 12,000 | ||
Y Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be:
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