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Operating Leverage Income statements for two different companies in the same industry are as follows:...

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Operating Leverage Income statements for two different companies in the same industry are as follows: Trimax, Inc.Quintex, Inc. Sales $300,000 150,000 $150,000 120,000 $30,000 $337,500 67,500 $270,000 240,000 $30,000 Less: Variable costs Contribution margin Less: Fixed costs Operating income Required: 1. Compute the degree of operating leverage for each company. Trimax Quintex 2. Compute the break-even point in dollars for each company. Trimax, Inc. Quintex, Inc. Why is the break-even point for Quintex, Inc., higher? Because it must cover more in fixed expenses. V 3. Suppose that both companies experience a 60 percent increase in revenues. Compute the percentage change in profits for each company. Trimax Quintex 9 0

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