Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,000 rackets and sold 3,900. Each racket was sold at a price of $80. Fixed overhead costs are $60,000 for the year. and fixed selling and administrative costs are $64,200 for the year. The company also reports the following per unit variable costs for the year: Required: Prepare an income statement under absorption costing. (1) Compute the degree of operating leverage (DOL) for each company. (2) Which company is expected to produce a greater percent increase in income from a 20% increase in sales? Complete this question by entering your answers in the tabs below. Compute the degree of operating leverage (DOL) for each company. Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,500 rackets and sold 4,400 . Each racket was sold at a price of $85. Fixed overhead costs are $68,750 for the year, and fixed selling and administrative costs are $64,700 for the year. The company also reports the following per unit variable costs for the year. Required: Prepare an income statement under variable costing. Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit The company's annual fixed costs are $562,500. Management targets an annual income of $1,012,500