2. Using the following information, determine the operating Leverage of Batiste and Owens companies: Batiste Company Owens Company Sales $400,000 $400,000 Variable Cost $300,000 $300,000 Fixed Cost $80,000 $50,000 e) Required: a) What is operating leverage? b) Determine operating leverage of each of the two companies c) What is the usefulness of operating leverage? d) What kind of company tend to have a high operating leverage versus those that tend to have low operating leverage? e) Determine what the operating income of each of the companies would be, given their respective operating leverages and a project increase in their sales by 10%. f) Given the operating leverages that you computed in item c above, what is your suggestion to each of the two companies about how each of them could increase their respective operating leverages