Check my work Exercise 21-24 Operating leverage computed and applied LO A2 Company A is a manufacturer with current sales of $3,300,000 and a 60% contribution margin. Its fixed costs equal $1,530,000. Company B is a consulting firm with current service revenues of $3,400,000 and a 30% contribution margin. Its fixed costs equal $540,000 Compute the degree of operating leverage (DOL) for each company. Contribution Margin Income Statement Company A $ 3,300,000 Company B 3,400,000 Sales Variable costs Contribution margin Fixed costs Pretax income Degree of Operating Leverage Numerator Denominator = Contribution margin / Pretax income Choose: Ratio Degree of Operating Leverage Company A Company B