4. The CVP income statements shown below are available for Blanc Company and Noir Company. Blanc C0. Nair C0. Sales $500,000 $500,000 Variable Costs 280 000 180 000 Contribution Margin $220,000 $320,000 Fixed Costs 170,000 270,000 Net Income s 50,000 50,000 Instructions a. Compute the degree of operating leverage for each company and explain the difference between the two companies. b. Assuming the sales revenue of each company increases by 20%, by what percent do you expect net income to increase? Prepare a variable costing income statement for each company and then compute the percent increase in net income. c. Assuming the sales revenue of each company decreases by 20%, by what percent do you expect net income to increase? Prepare a variable costing income statement for each company and then compute the percent increase in net income