The sales and cost data for two companies in the transportation industry are as follows:

X Company Y Company
Amount Percent Amount Percent
Sales $ 150,000 100.00 $ 150,000 100.00
Variable costs 90,000 60.00 45,000 30.00
Contribution margin 60,000 40.00 105,000 70.00
Fixed costs 34,200 70,250
Operating income (πB) $ 25,800 $ 34,750

X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be:

Multiple Choice

2.33

3.00

5.00

4.00

1.00

Business
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