The following information is for Gable, Inc. and Harlowe, Inc. for the recent year. Gable,Inc.Harlowe,Inc.Sales $800,000 $800,000 Variable costs 400,000 200,000 Contribution margin 400,000 600,000 Fixed costs 200,000 400,000 Income from operations $200,000 $200,000 Based on the above data, which company has a higher operating leverage?
A. Operating leverage is the same for both companies
B. Harlowe, Inc.
C. Gable, Inc.
D. Cannot be determined
Answer: B
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