Exercise 5-24 Operating leverage computed and applied LO A2 Company A is a manufacturer with current sales of $3,800,000 and a 50% contribution margin. Its fixed costs equal $1,320,000. Company B is a consulting firm with current service revenues of $3,700,000 anda 25% contribution margin. Its fixed costs equal $370,000 Compute the degree of operating leverage (DOL) for each company Company Company B Degree of Operating Leverage Choose: Numerator Denominator 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