The Following Information Is for Gable,Inc Based on the Above Data,which Company Has a Higher Operating

Multiple Choice

The following information is for Gable,Inc.and Harlowe,Inc.for the recent year. $$\begin{array} { l r r r } & \text { Gable, Inc. } & \text { Harlowe, Inc. } \\\text { Sales } & \$ 800,000 & \$ 800,000 \\\text { Variable costs } & \underline{ 400,000 }& \underline{200,000 }\\\text { Contribution margin } & 400,000 & 600,000 \\\text { Fixed costs } & \underline{200,000 } & \underline{ 400,000} \\\text { Income from operations }& \underline{ \$ 200,000 }& \underline{ \$ 200,000}\end{array}$$ Based on the above data,which company has a higher operating leverage?

A) Gable, Inc.
B) Harlowe, Inc.
C) Operating leverage is the same for both companies
D) Cannot be determined