1. The following CVP income statements are available for Viejo Company and Nuevo Company. Both companies have 1000 units sales level and $800,000 sales revenue. However their cost structures are very different. Sales Variable costs Contribution margin Fixed costs Operating income Viejo Company $800,000 480,000 320,000 240,000 $ 80,000 Nuevo Company $800,000 300,000 500,000 420,000 $80,000 (a)Compute the break-even point in dollars and in units for each company. (b)Compute the margin of safety ratio for each company. (c) Compute the degree of operating leverage for each company. (d)Assuming that sales revenues and units sold of both companies decrease 20% and become 800 units, prepare a CVP income statement for each company. (e) Assuming that sales revenues and units sold of the companies increase 30%, calculate the operating incomes of the two companies by using DOL (Don't prepare income statement).