Check my work Check My Work button is now enabled5Item 5Item 5 6 points Company A is a manufacturer with sales of $3,100,000 and a 60% contribution margin. Its fixed costs equal $1,390,000. Company B is a consulting firm with service revenues of $3,200,000 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 Compute the degree of operating leverage (DOL) for each company. Contribution Margin Income Statement Company A Company B Choose: Numerator Degree of Operating Leverage i Denominator | = Ratio Degree of Operating Leverage Company A Company B Company Benefits > Company A is a manufacturer with sales of $3,100,000 and a 60% contribution margin. Its fixed costs equal $1,390,000. Company B is a consulting firm with service revenues of $3,200,000 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. Company A Company B