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The following sales and cost data (in thousands) are for two companies in the transportation industry: Company A Company B Percent Percent of of Amount Sales Amount Sales Sales $ 120,000 100% $ 120,000 100% Variable costs 48,000 40 24,000 20 Contribution margin $ 72,000 605 $ 96,000 80 Fixed costs 32,400 49,400 Operating profit $ 39,600 $ 46,600 Required: 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 10% in the next year but that everything else remains constant. Calculate the percentage increase in profit for each company. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Calculate the degree of operating leverage (DOL) for each company. (Round your answers to 3 decimal places.) Company A Company B Degree of operating leverage C Roni Reg 1B > sportation industry Sales Variable costs Contribution margin Fixed costs Operating profit Company A Percent of Amount Sales $ 120,000 100% 48,000 40 $ 72,000 32,400 $ 39,600 Company B Percent of Amount Sales $ 120,000 100% 24,000 20 $ 96,000 80% 49,400 $ 46,600 60% Required: 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 10% in the next year but that everything else remains constant. Calculate the percer each company. Complete this question by entering your answers in the tabs below. Req 1A Req1B Req 2 If sales increase from the present level, which company benefits more? Company A O Company B Amount $ 120,000 48,000 $ 72,000 32,400 $ 39,600 Sales 100% 40 60% Sales Variable costs Contribution margin Fixed costs Operating profit Amount $ 120,000 24,000 $ 96,000 49,400 $ 46,600 Sales 100% 20 80% Required: 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 10% in the next year but that everything else remains constant. Calculate th each company. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 1 Assume that sales rise 10% in the next year but that everything else remains constant. Calculate the pe profit for each company. (Input your answers as percentages rounded to 2 decimal places (.e., 0.1567 Company A % Company B % Increase in profit

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