Exercise 18-24 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 Company B 3,400.000 Contribution Margin Income Statement Company A Sales 15 3,300.000 Variable costs Contribution margin Fixed costs 1.530.000 Pretax Income Degree of Operating Laverage Choose Numerator Denominator 540.000 Ratio Degree of Operating Leverage Company A Company B Identify which company benefits more from a 20% increase in sales o Company A Company B