Dublin Company and Gary Corporation have degrees of operating leverage of 4.2 and 2.9, respectively. Both companies have net income of $86,000. Without performing any calculations, which company is more vulnerable to fluctuations in sales level? Determine each company’s total contribution margin.
a. Dublin Company is more vulnerable; Contribution margins not provided.
b. Gary Corporation is more vulnerable; Contribution margins not provided.
c. Dublin Company is more vulnerable; Dublin's contribution margin is higher.
d. Gary Corporation is more vulnerable; Gary's contribution margin is higher.