The sales and cost data for two companies in the transportation industry are as follows: X Company
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Question:
The sales and cost data for two companies in the transportation industry are as follows:
| X Company | Y Company | |||
|---|---|---|---|---|
| Amount | Percent | Amount | Percent | |
| Sales | $ 122,000 | 100.00 | $ 122,000 | 100.00 |
| Variable costs | 73,200 | 60.00 | 36,600 | 30.00 |
| Contribution margin | 48,800 | 40.00 | 85,400 | 70.00 |
| Fixed costs | 36,050 | 72,050 | ||
| Operating income (πB) | $ 12,750 | $ 13,350 | ||
X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be:
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