The following sales and cost data (in thousands) are for two companies in the transportation...
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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 $ $ Variable costs Contribution margin $ $ Fixed costs Operating profit $ $ Calculate the degree of operating leverage DOL for each company. Company A Company B Note: Round your answers to decimal places. Degree of Operating Leverage If sales increase from the present level, which company benefits more? Assume that sales rise in the next year but that everything else remains constant. Calculate the percentage increase in profit for each company. Company A Company B Note: Input your answers as percentages rounded to decimal places ie Increase in profit
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 $ $ Variable costs Contribution margin $ $ Fixed costs Operating profit $ $ Calculate the degree of operating leverage DOL for each company. Company A Company B Note: Round your answers to decimal places. Degree of Operating Leverage If sales increase from the present level, which company benefits more? Assume that sales rise in the next year but that everything else remains constant. Calculate the percentage increase in profit for each company. Company A Company B Note: Input your answers as percentages rounded to decimal places ie Increase in profit
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