Abdel Inc. and Hui Inc. have the following operating data:

a. Compute the operating leverage for Abdel Inc. and Hui Inc.
b. How much would income from operations increase for each company if the sales of each increased by 20%?
c. Why is there a difference in the increase in income from operations for the two companies?Explain.

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Abdel Hui Sales Variable costs Contribution margin Fixed costs Income from operations 150,000 $200,000 125,000 75,000 60,000 $ 15,000 90,000 60,000 10,000 50,000