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  3. 3. (15 points) income statements for two different

3. (15 points) Income statements for two different companies...

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Accounting

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3. (15 points) Income statements for two different companies in the same industry are as follows $400,000 300.000 Less: Variable costs $A00 000 Contribution margin Less: Fixed costs $100,000 $200,000 50.000 50,000 Operating income S 50,000 50.000 Required: A. Calculate the degree of operating leverage for each firm. Calculate the margin of safety in dollars for each firm. Determine the operating income for each firm if sales increase by 20%. C. CM Net opetaing De gree incom P-20000 Leva

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