1) XYZ Ltd produces two products and the following budget applies for the next year: Selling price Variable costs Contribution margin Fixed costs apportioned Units sold Product X () 6 2 4 100000 70000 Product Y () 12 4 8 200000 30000 You are required to calculate the break-even points for each product and the company as a whole and comment on your findings. 2) The profit statements for two different companies in the same industry are as follows: Company A(000) Company B(000) Sales 10 000 10 000 Less: Variable costs 8 000 4 000 Contribution margin 2 000 6 000 Less Fixed costs 1 000 5 000 profit 1 000 1 000 (a) Compute the degree of operating leverage for each company. (b) Compute the break-even point for each company. Explain why the break-even point for Company B is higher. (c) Assume that both companies experience a 50 per cent increase in sales revenues. Explain why the percentage increase in Company B's profits is significantly larger than that of Company A