1. Degree of Operating Leverage Instructions: Use the CVP Income Statements below to answer the questions below the income statements. Baylee Company CVP Income Statement Sales 550,000 Less: Variable Costs 155,000 Contribution Margin 395,000 Madison Company CVP Income Statement Sales 550,000 Less: Variable costs 370,000 Contribution Margin 180,000 Less: Fixed Costs 130,000 Net Income (Net Loss) 50,000 Less: Fixed Costs Net Income (Net Loss) 345,000 50,000 a. Complete the Degree of Operating Leverage for each company (show your work). b. What can you tell, in general, about these two companies by looking at their Degree of Operating Leverage