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  3. company a is a manufacturer with sales of $3,500,0

Company A is a manufacturer with sales of $3,500,000 and a 50% contribution margin. Its...

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Accounting

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Company A is a manufacturer with sales of $3,500,000 and a 50% contribution margin. Its fixed costs equal $1,200,000. Company B is a consulting firm with service revenues of $3,400,000 and a 20% contribution margin. Its fixed costs equal $150,000. Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales. Complete this question by entering your answers in the tabs below. DOL Company Benefits Which company benefits more from a 20% increase in sales. Which company benefits more from a 20% increase in sales.

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